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Informist, Wednesday, Mar. 5, 2025

By Sachi Pandey

MUMBAI – Participants in the corporate bond market maintained a wait-and-watch approach due to dearth of fresh cues, resulting in yields staying steady across tenures on Wednesday, dealers said. "The market has dried up...there is no specific reason for it. There is also no reason for the market to move right now," a dealer at a large sized brokerage firm said.

Mutual funds and insurance companies bought as well as sold bonds. "There are more sellers than buyers. Investors facing margin shortfalls are forced to sell corporate bonds," explained a dealer at a mutual fund firm. Deals totalling INR 103.90 billion were recorded on the National Stock Exchange and BSE combined, compared with INR 163.99 billion on Tuesday.

Papers issued by Tata Capital, Aditya Birla Finance, Mahindra And Mahindra Financial Services, Kerala Infrastructure Investment Fund Board, National Housing Bank, Small Industries Development Bank of India, National Bank for Agriculture and Rural Development, Indian Renewable Energy Development Agency, Telangana State Industrial Infrastructure Corp., Sammaan Capital, Power Finance Corp., LIC Housing Finance, Suryapet Khammam Road, State Bank of India, HDFC Bank, REC were traded the most on the exchanges.

The focus has shifted to liquidity, which has eased to near neutral for the first time since December, and it is expected to ease further. According to Reserve Bank of India data, net liquidity injected by the central bank, which reflects the systemic liquidity deficit, Tuesday fell to its lowest level of INR 204.17 billion since Dec. 15, a sharp decline from INR 1.10 trillion on Monday.

This decrease was due to inflows from the settlement of a $10.06 billion dollar/rupee swap auction conducted by the RBI on Friday, dealers said. This was a surprise for market participants as they expected some amount to be rolled over, but it seems like the entire INR 870 billion has flown into the system, dealers said.

In the primary market, Cholamandalam Investment and Finance Co. Wednesday raised INR 10 billion through bonds maturing in seven years at a coupon of 9.05%, with major investors for the issue being qualified institutional buyers, dealers said. Anzen India Energy Yield Plus Trust raised INR 7.00 billion through bonds maturing in three years at a quarterly coupon of 7.77%. Ecobox Industrials Asset raised INR 975.30 million and Aptus Finance India raised INR 750 million through bond offerings.

On Thursday, Aditya Birla Finance has invited bids to raise up to INR 15 billion through bonds maturing on Aug. 7, 2028 at a fixed coupon of 7.94%. Tata Capital is in queue to raise up to INR 7.50 billion through bonds maturing on Jan. 22, 2027, and IIFL Finance is seeking bids for bonds maturing in two years to raise up to INR 1.50 billion. Samman Finserv and Indel Money have also invited bids for their bond offerings.

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating INR 9.00 million were traded at a weighted average yield of 7.1569-7.2590%, data from the RBI's Negotiated Dealing System–Order Matching System showed Wednesday.

* INR 5.00 million of Telangana's Mar. 7, 2028 bonds were traded at 7.1569%

* INR 4.00 million of Andhra Pradesh's Oct. 18, 2029 bonds were traded at 7.2590%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

Edited by Ashish Shirke

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