More Stories

Informist, Thursday, Jun. 26, 2025

By Kabir Sharma

MUMBAI – Issuances in the short-term debt market remained low on Thursday as demand from investors dwindled due to month-end redemption pressure from mutual funds and as investors hoped for better rates after the variable rate reverse repo auction on Friday, dealers said. "Mutual funds were not there today because of month-end redemption. Market is hoping for better rates post the VRRR tomorrow," a trader at a brokerage firm said. 

Post market hours on Tuesday, the RBI announced that it will conduct a seven-day variable rate reverse repo auction on Friday for INR 1 trillion. The RBI announcement pushed up short-term rates and rates are expected to rise further post the auction.

Godrej Industries was the sole issuer of commercial papers on Thursday, raising INR 1.5 billion at 6.15% for a period of three months. Bank of India was the sole issuer of certificates of deposit, raising INR 20 billion for three months at 5.95%. 

Borrowing costs of CDs issued by banks were unchanged from Wednesday's close of 5.85-6.05%. Rates on three-month paper issued by non-banking financial companies were unchanged from Wednesday's close of 6.18-6.38%, while indicative rates on three-month paper issued by manufacturing companies were also similar to Wednesday's close of 5.87-6.07%. 

-Primary market

* Godrej Industries raised funds through CPs.

* Bank of India raised funds through CDs.

--Secondary market

* ICICI Bank's CD maturing Friday was traded once at a weighted average yield of 5.3298%.

* TATA Steel's CP maturing Friday was traded once at a weighted average yield of 5.9998%.

The following were the volumes, in INR billion, in the secondary market for short-term debt at 1700 IST, as detailed by the Clearing Corp. of India's F-TRAC platform:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

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 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

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