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Informist, Wednesday, Jul. 9, 2025

By Siddhi Chauhan

MUMBAI – Yields on corporate bond in the secondary market were steady as traders refrained from placing aggressive bets on lack of significant cues, dealers said. Trading activity from all entities were limited to portfolio requirement, they added. 

"Trading activity is muted because there are no cues for one to trade upon. Government bond market has also not been able to lend any cues," a dealer at a mid-sized brokerage firm said. "It (trading activity) may or may not pick up in the coming days, it depends on the investors' requirements. Untill then, we might see need based trade only."

The yields on the three-year, five-year, and 10-year papers issued by National Bank for Agriculture and Rural Development closed near Tuesday's closing level despite participation from all entities, dealers said. 

Mutual funds were seen buying across segments on levels they considered lucrative, dealers said. Despite buying from mutual funds across segment, yields remained stable as the impact was neutralised by their selling, dealers said. Banks also followed a similar approach for bonds maturing in upto three year, dealers said. 

Insurance companies were also seen both buying and selling bonds maturing in up to five years in light volumes, dealers said. Pension funds which were absent on Tuesday, picked up bonds of longer maturity, dealers said. Their buying failed to translate into significant movement as it subsided in the first half itself, dealers said. 

Trade volumes in the secondary market were subdued, with deals aggregating to INR 86.28 billion recorded on the National Stock Exchange and BSE combined at 1800 IST, slightly up from INR 68.56 billion the previous session.

Papers issued by Rural Electrification Corp, Tata Capital Housing Finance, State Bank of India, LIC Housing Finance, Export and Import Bank of India and National Bank For Agriculture And Rural Development were the traded most on bourses.

In the primary market, Bajaj Housing Finance Ltd. Wednesday raised INR 10.00 billion through the reissuance of a bond maturing Jun. 12, 2030, and set a yield of 7.16%. On Thursday, Aditya Birla Housing Finance Ltd. plans to raise INR 3 billion through bonds maturing on Jul. 30, 2027, sources told Informist. Bidding will take place on BSE's electronic bidding platform from 1130 IST to 1230 IST. Apart from Aditya Birla Housing Finance, Nuvama Wealth And Investment, Akara Capital Advisors, Keertana Finserv and Aditya Birla Capital also plans to tap the corporate bond market on Thursday. 

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 120.10 million were traded at a weighted average yield of 6.0064-6.8002%, data from the Reserve Bank of India's Negotiated Dealing System–Order Matching System showed Tuesday.

* INR 100.00 million of Punjab's Mar. 31, 2029, bond was dealt at a weighted average yield of 6.5486%

* INR 3.60 million of Tamil Nadu's Mar. 22, 2026, bond was dealt at a weighted average yield of 6.7652%

* INR 3.00 million of Tamil Nadu's Feb. 22, 2032, bond was dealt at a weighted average yield of 6.8002%

* INR 2.50 million of Tamil Nadu's Feb. 22, 2028, bond was dealt at a weighted average yield of 6.3514%

* INR 1.00 million of Tamil Nadu's Feb. 22, 2031, bond was dealt at a weighted average yield of 6.3514%

* INR 10.00 million of Rajasthan's Mar. 31, 2026, bond was dealt at a weighted average yield of 6.7006%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

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

Edited by Akul Nishant Akhoury

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