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Informist, Monday, Jul. 7, 2025

By Siddhi Chauhan

MUMBAI – Yields on corporate bonds in the secondary market moved in a narrow range Monday as traders refrained from placing aggressive bets in the absence of any significant cues, dealers said. Despite participation from mutual funds, insurance companies and banks, the volumes in the secondary market remained lacklustre, they added. 

"The levels are same from the previous day. Mutual funds, banks and insurance (companies) were on both buying and selling sides, preventing any significant movement," a dealer at a mid-sized brokerage said. "They are all doing it for lucrative levels."

All the above-mentioned entities were seen adjusting their portfolios through routine buying and selling of papers. However, it did not translate into a significant movement due to miniscule trade volume, dealers said. Pension funds were absent from the market, dealers said.

Trade volume in the secondary market was broadly similar to Friday, with deals aggregating to INR 90.68 billion recorded on the National Stock Exchange and BSE combined at 1800 IST, compared with INR 91.92 billion the previous session. The activity was also subdued as traders awaited more clarity on US President Donald Trump's tariff policy. 

Trump extended the pause in tariffs announced in April till Aug. 1 for countries without a deal with the US. Treasury Secretary Scott Bessent confirmed Sunday that these tariffs will indeed be enforced from Aug. 1 for countries that have not finalised an agreement with the Trump administration. Bessent clarified Aug. 1 is not a new deadline but rather an enforcement date, potentially giving trading partners more time to renegotiate tariff terms. Investors will closely assess the situation, weighing the implications of possible tariff changes. 

Papers issued by REC, HDFC Bank, Indian Renewable Energy Development Agency, LIC Housing Finance, Power Finance Corp, Trust Investment Advisory, HDB Financial Services, and Mahindra & Mahindra Financial Services were traded the most on bourses.

In the primary market, Bajaj Finance Ltd. set a coupon of 7.11% on a bond maturing on Jul. 10, 2028, and accepted bids aggregating to INR 15.05 billion. The issue had a base size of INR 10.0 billion and a greenshoe option of INR 20.0 billion.

Market participants expect issuances to rise gradually with banks and non-banking financial companies, dealers said. On Tuesday, Kisetsu Saison Finance (India) Pvt. Ltd. will tap the corporate bond market to raise up to INR 1 billion through a Jan. 9, 2036 bond.

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 15.50 million were traded at a weighted average yield of 6.2186-6.6507%, data from the Reserve Bank of India's Negotiated Dealing System–Order Matching System showed Monday.

* INR 7.50 million of Chhattisgarh's Mar. 28, 2031, bond was dealt at a weighted average yield of 6.6507%

* INR 5.00 million of Uttar Pradesh's Jun. 2, 2027, bond was dealt at a weighted average yield of 6.2186%

* INR 3.00 million of Haryana's Mar. 31, 2026, bond was dealt at a weighted average yield of 6.4723%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

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

Edited by Tanima Banerjee and Rajeev Pai

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