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Informist, Tuesday, Mar. 18, 2025

By Vaishali Tyagi

MUMBAI – Yields on corporate bonds in the secondary market remained in a narrow range on Tuesday as traders focused on meeting portfolio requirements ahead of the financial year 2024-25 (Apr-Mar) end, dealers said. "...I saw a muted day in trading in secondary market and traders are primarily engaging in need-based trading," a dealer at a mid-sized brokerage firm said. "See, shorter-to-mid segment papers are currently the most liquid, while longer-tenure papers are experiencing low liquidity."

Market participants are focused on meeting their year-end targets as the financial year-end approaches. "Every entity needs funds for their disbursement targets, so traders are prioritizing portfolio requirements ahead of year end," the dealer quoted above said. 

Deals aggregating to INR 117.62 billion were recorded on the National Stock Exchange and BSE combined, against INR 110.98 billion on Monday. Bonds issued by Larsen And Toubro, REC, Housing And Urban Development Corp. Ltd., State Bank of India, LIC Housing Finance, Power Finance Corp., National Bank For Agriculture And Rural Development, Fullerton India Credit Co. Small Industries Development Bank of India, and Trust Investment Advisors were traded the most on exchanges.

On the primary market side, public sector entity, NTPC, raised INR 40 billion through its bonds maturing in 15 years at a coupon of 7.26%. NIIF Infrastructure Finance also tapped the market Tuesday to raise INR 6.83 billion through bonds maturing on May 20, 2032 at a fixed coupon of 7.93%.

On Wednesday, National Bank for Agriculture and Rural Development plans to raise up to INR 70 billion through September 2028 bonds. Small Industries Development Bank of India has also invited bids on Wednesday to raise up to INR 60 billion through 5-year bonds. Another state-owned entiity, Indian Renewable Energy Development Agency is also in pipeline to tap the market and raise INR 20.00 billion through perpetual bonds. 

India Infradebt has also planned to tap the market and raise up to INR 8.15 billion through September 2030 bonds. Tara Capital Partners India has invited bids to raise INR 250.00 million through issuance of March 2031 bonds. 

Dealers said traders are also abstaining from taking aggressive bets ahead of interest rate decisions by the US Federal Open Market Committee due late Wednesday. "There is very less chance of rate cut and US central bank is widely expected to maintain status quo in its benchmark rate, yet traders are keeping an eye on it," a dealer at another mid-sized brokerage firm said.

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating INR 5.00 million were traded at a weighted average yield of 7.2613-7.2792%, data from the Reserve Bank of India's Negotiated Dealing System–Order Matching System showed Tuesday.

* INR 4.00 million of Uttar Pradesh's Mar. 29, 2030 bonds were traded at 7.2613%

* INR 1.00 million of Uttar Pradesh's Mar. 29, 2031 bonds were traded at 7.2792%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

Edited by Akul Nishant Akhoury

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