More Stories

Informist, Monday, May 26, 2025

By Ashna Mariam George 

MUMBAI – The Reserve Bank of India's surplus transfer to the central government failed to impact the yields on corporate bonds in the secondary market, which ended largely steady Monday, dealers said. "The dividend which was announced was lower than the expectations but still higher than the previous one...so there was no further rise in yields," a dealer at a mid-sized brokerage firm said.

After market hours Friday, the RBI said it will transfer a record INR 2.69 trillion as surplus to the government for 2024-25 (Apr-Mar). This was slightly below the INR 3 trillion expected by market participants, but higher than the then-record INR-2.11-trillion surplus given last year.

"The dividend was not too low than expectation, a difference of 30,000 (INR 300 billion) does not make much of a difference," a dealer at a mid-sized private sector bank said. "By the end of the week there is US GDP (US Jan-Mar 2nd estimate GDP), then our own (Jan-Mar and 2024-25 (Apr-Mar)) GDP , and after that there is the MPC (RBI's Monetary Policy Committee) meeting. So, some traders want to lighten their books and there was some selling." The US data will be released Thursday and India's GDP figures will be released Friday. 

Banks and mutual funds were active on both buying and selling sides across tenures, dealers said. Deals aggregating INR 134.81 billion were recorded on the National Stock Exchange and the BSE combined, up from INR 109.18 billion reported Friday.

Papers issued by the National Bank For Agriculture And Rural Development, the Small Industries Development Bank of India, the Power Finance Corp., the Telangana State Industrial Infrastructure Corp., Tata Capital Financial Services were traded the most on exchanges.

In the primary market, L&T Finance raised INR 15 billion through two bonds of different maturities. The company raised INR 7.50 billion through bonds maturing on Jun. 29, 2027, at a fixed coupon of 7.21% and another INR 7.50 billion through reissuance of bonds maturing on Jun. 29, 2028, at a yield of 7.2509%.

Several non-banking finance companies are in line to tap the market Tuesday. Jio Credit has invited bids to raise up to INR 15 billion through three-year bonds. Poonawalla Fincorp plans to raise up to INR 25 billion through one fresh issuance and one reissuance. Edel Finance Co., 360 ONE Prime, and Cholamandalam Investment and Finance Co. will also raise funds Tuesday.

UDAY BONDS

In the secondary market, Uttar Pradesh's Mar. 21, 2029, Ujwal DISCOM Assurance Yojana bonds aggregating INR 15 million were traded at a weighted average yield of 6.8115%, data from the RBI's Negotiated Dealing System–Order Matching System showed Monday.

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.