More Stories

Informist, Wednesday, Jul. 2, 2025

By Vaishali Tyagi and Siddhi Chauhan

MUMBAI – Yields on corporate bonds were steady Wednesday as both buyers and sellers remained relatively inactive, dealers said. Mutual funds and banks adjusted their portfolios through routine buying and selling of short-term papers, they added. 

"Yields are largely on the same levels due to the absence of significant movements on both sides," a dealer at a brokerage firm said. "There was buying from mutual funds and banks in the shorter-tenure, but it was neutralised by selling from both entities." 

Insurance companies were also seen buying and selling three-year paper issued by the National Bank for Agriculture and Rural Development. Participation from these did not translate into significant movement due to miniscule trade volume, dealers said. 

Apart from the benchmark National Bank for Agriculture and Rural Development papers, Life Insurance Corporation of India's corporate bonds maturing in upto three years also saw traction in the secondary market due to selling, likely from banks, dealers said.

"Today (Wednesday) we saw good volumes in the LIC's one-three-year papers. It is difficult to tell the reason though," another dealer at a brokerage firm said. "I think banks are selling these papers and buying the NABARD papers."  

Trade volume in the secondary market was slightly higher, with deals aggregating to INR 202.19 billion recorded on the National Stock Exchange and BSE combined at 1800 IST, compared with INR 190.16 billion Tuesday.

Papers issued by LIC Housing Finance, National Bank for Agriculture and Rural Development, Power Finance Corp., Bharti Telecom, REC and Indian Railway Finance Corp. were traded the most on bourses.

In the primary market, activity was subdued Wednesday. Market participants expect issuances to rise gradually with banks dominating the primary market, dealers said. The boards of Indian Bank and Canara Bank have approved raising funds through corporate bonds. On Thursday, Sylvanus Properties and Vivriti Capital will tap the market, according to sources. 

UDAY BONDS

Ujjwal DISCOM Assurance Yojana bonds were not traded in the secondary market on Wednesday, as per the Reserve Bank of India's Negotiated Dealing System–Order Matching System.

BENCHMARK LEVELS FOR CORPORATE BONDS:

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

Send comments to feedback@informistmedia.com

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