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Informist, Monday, Jul. 14, 2025

By Vidhushi RajPurohit

MUMBAI – Yields on corporate bonds were broadly unchanged in the secondary market Monday for lack of significant cues and subdued activity by market participants, dealers said. Some traders also cited the usual lull at quarter-start (Jul-Sept) as the reason for low activity in the market. 

"The market was very dull, there was not much activity," a dealer at a mid-sized brokerage firm said. "Mutual funds were active in the market but nothing major in terms of total quantum."

Mutual funds were likely selling papers in the secondary market, whereas banks were said to have been active on both the buying and selling sides. Some insurance companies were also seen active in both sides, however, the overall volume remained low, dealers said. 

The release of India's CPI print for June did not elicit any reaction from the market. CPI inflation fell to 2.10%, from 2.82% in May, recording the lowest print since January 2019. The print was largely in line with market's expectations, dealers said. An Informist poll of 16 economists had estimated the headline inflation in June at 2.3%. 

"There does not seem to be any impact from the CPI data and there was no major movement in gsec (government securities) also and it came so near closing time, so nothing major movement was seen today (Monday)," a dealer at a brokerage firm said. The statistics ministry released CPI data at 1600 IST Monday. 

Monday, deals were INR 68.48 billion were recorded on the National Stock Exchange and BSE combined, as against INR 67.51 billion Friday. Papers issued by Vivriti Capital, State Bank of India, Apex Homes, The Andhra Pradesh Mineral Development Corp., LIC Housing Finance, Cholamandalam Investment And Fin. Co., Telangana State Industrial Infrastructure Corp., and Bajaj Finance were traded the most in the secondary market.

In the primary market, several non-banking financial institutions were planning to raise funds Monday. Poonawalla Fincorp Ltd. set a coupon of 7.5285% on a bond maturing on Sep. 24, 2027, and accepted bids aggregating to INR 7.80 billion. Tata Capital reissued two bonds Monday and raised a cumulative sum of INR 23 billion.

The company set a yield of 7.02% and accepted bids aggregating to INR 13 billion through the reissuance of bond which is set to mature on  Sep. 7, 2027. Separately, the company raised INR 10 billion by reissuing bond maturing on Oct. 20, 2028, and set a yield of 7.1550%.

Market participants are keenly eyeing the big-ticket issuance by Housing And Urban Development Corp. Ltd. The public sector company is set to raise up to INR 30 billion Tuesday, through a bond maturing in three years. IIFL Samasta Finance Ltd. is also planning to raise INR 2 billion through a bond maturing in three-years. 

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 55.00 million were traded at a weighted average yield of 6.7053-7.3618%, data from the Reserve Bank of India's Negotiated Dealing System–Order Matching System showed Monday.

* INR 30.00 million of Jharkhand's Mar. 30, 2026, bond was dealt at a weighted average yield of 7.0172%

* INR 10.50 million of Uttar Pradesh's Mar. 29, 2027 and Mar. 29, 2026, bonds were dealt at a weighted average yield of 7.2329-7.3618%

* INR 6.00 million of Haryana's Jul. 4, 2026, bond was dealt at a weighted average yield of 7.2675%

* INR 5.50 million of Tamil Nadu's Mar. 22, 2027, bond was dealt at a weighted average yield of 6.7053%

* INR 3.00 million of Telangana's Mar. 7, 2027, bond was dealt at a weighted average yield of 7.2724%

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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