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Informist, Friday, May 2, 2025

By Ashna Mariam George 

MUMBAI – Corporate bond yields were little changed Friday as market participants shifted focus to issuances in the primary market, dealers said. "Market was less active mainly because it was a short week, and there were three major primary issuances today (Friday)," a dealer at a mid-sized brokerage firm said. Market was shut Thursday on account of Maharashtra Day and Labour Day.

The primary market was busy Friday with four issuances during the day. The Housing and Urban Development Corp. tapped the market Friday and raised INR 21.90 billion through bonds maturing in five years at a coupon of 6.90%. Frequent-issuer Indian Renewable Energy Development Agency raised INR 15 billion through near-five-year bonds maturing on May 31, 2030 at 7.00%. The cut-offs for these issuances were largely in line with market expectations, dealers said. 

Another public sector entity NHPC raised INR 19.45 billion Friday through 15-year bonds at 6.86% coupon. "NHPC got extremely good levels, the demand was far more aggressive...they got decent size of bids and coupon came below expectations of 6.90% levels," a dealer at a private-sector bank said. Insurance companies and public sector banks were the major investors in Friday's primary issuances, dealers said.

Godrej Industries raised INR 10 billion through two bonds of different maturities. Aditya Birla Capital has invited bids on Monday to raise up to INR 10 billion through bonds maturing on May 4, 2035.

With several biddings in the primary market, participation in the secondary market was dull Friday, dealers said. Only mutual funds and banks were active in the market. "Today (Friday) was lacklustre...if we have a relatively quiet weekend in a geopolitical point of view, then there will be some kind of recovery next week," the private-sector bank dealer said. "There is a palpable amount of concern over what will happen in the geopolitical action, if nothing pans out, we can expect a relief." The market has been cautious since Apr. 22, when terrorists killed 26 tourists in Pahalgam, Jammu & Kashmir.

Deals aggregating INR 98.41 billion were recorded on the National Stock Exchange and the BSE combined, lower than INR 117.87 billion reported on Wednesday. Papers issued by the Indian Railway Finance Corp., the Telangana State Industrial Infrastructure Corp., the National Bank for Agriculture and Rural Development, the Small Industries Development Bank of India, and Apex Homes were most traded on the exchanges.  

UDAY BONDS

None of the Ujjwal DISCOM Assurance Yojana bonds were traded in the secondary market on Friday, according to the Reserve Bank of India's Negotiated Dealing System–Order Matching System.

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

Edited by Ashish Shirke

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