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Informist, Thursday, Jul. 24, 2025

By Vidhushi RajPurohit

MUMBAI – Yields in the secondary market remained steady Thursday with the trading volume being low as action shifted to the primary market on account of big-ticket issuances, dealers said. Issuances aggregating to INR 77.75 billion were lined up in the primary market, which included the keenly eyed INR 70-billion issuance by National Bank for Agriculture and Rural Development. 

Mutual funds were seen selling short-term bonds in the secondary market and deploying the funds in long-term bonds, dealers said. The overall quantum of trades remained on the lower side. Some banks were also active on the buying side, with most of their trades concentrated in short-term bonds. According to dealers, majority of the trades in the secondary market were in bonds maturing in 2027 and 2028. Some trades in low quantums in long-term bonds by a few insurance companies were also reported, dealers said.

Thursday, deals aggregating to INR 108.61 billion were recorded on the National Stock Exchange and BSE combined. Wednesday, the volume was INR 109.79 billion. Papers issued by Tata Capital Housing Finance Ltd., HDFC Bank Ltd., State Bank of India, Apex Homes Pvt. Ltd., The Andhra Pradesh Mineral Development Corp. Ltd., LIC Housing Finance Ltd., Power Finance Corp. Ltd., Vedanta Ltd., and NABARD were traded the most.

"Activity in the (corporate bonds) secondary market is nothing significant," said a dealer at a mid-sized broking firm. "Most traders are selling and buying on the basis of their requirement, nothing extraordinary is taking place as people are lacking guidance or cues to place bets. I am assuming most traders are also flocking to the primary market these days as big-ticket issuers are tapping the market... which could provide some guidance. Today (Thursday),(NABARD) was there... SIDBI tapped yesterday (Wednesday) and got fine levels, so market is steady and therefore both markets are seeing balanced activity."

In the primary market, NABARD raised INR 70.00 billion through bonds maturing on Oct. 12, 2028, at a coupon of 6.66%. The cut-off for the issuance was largely in line with market expectations. Traders were seeing the coupon at 6.64-6.66%, dealers said. According to the bid book accessed by Informist, the issue garnered 133 bids aggregating to INR 123.74 billion with coupons in the range of 6.55-6.74%.

Friday, the primary market will again remain busy with issuances amounting to INR 43.32 billion lined up. Traders are eyeing issuances by Tata Capital Housing Finance Ltd. and DLF Cyber City Developers Ltd. Tata Capital Housing Finance plans to raise up to INR 20.00 billion through reissuance of two bonds of different maturities. DLF Cyber City will seek bids for INR 11.00 billion via a five-year bond issuance. 

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 282.90 million were traded at a weighted average yield of 6.7419-7.0600%, according to data from the Reserve Bank of India's Negotiated Dealing System–Order Matching System Thursday.

* INR 100.00 million of Telangana's Mar. 7, 2032, bond was dealt at a weighted average yield of 7.0000%

* INR 60.00 million of Punjab's Mar. 30, 2029, bond was dealt at a weighted average yield of 7.0000%

* INR 50.00 million of Jharkhand's Mar. 30, 2030, bond was dealt at a weighted average yield of 7.0000%

* INR 50.00 million of Jammu and Kashmir's Mar. 30, 2029, bond was dealt at a weighted average yield of 7.0000%

* INR 12.90 million of Rajasthan's Mar. 15, 2026, bond was dealt at a weighted average yield of 6.7419%

* INR 6.00 million of Haryana's Jul. 4, 2026, bond was dealt at a weighted average yield of 6.9479%

* INR 4.00 million of Uttar Pradesh's Mar. 29, 2026, and Mar. 29, 2027, bonds were dealt at weighted average yields of 6.9717-7.0600%

BENCHMARK LEVELS FOR CORPORATE BONDS: 

End

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

Edited by Rajeev Pai

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