More Stories

Informist, Monday, Jul. 28, 2025

By Vaishali Tyagi

MUMBAI – Corporate bond yields in the secondary market Monday ended steady as most participants restricted their activity to meeting basic portfolio requirements, dealers said. Some activity was there, but it was insignificant to move yields, they said.

"There's not much happening in the market today (Monday) as its just start of the week, people will take bets as they will see some cues goimg forward...right now, most people are doing only need-based trading, and we're not seeing any significant bets from traders," a dealer at a mid-sized brokerage firm said. "The market lacks guidance, which is largely absent these days, resulting in levels remaining broadly same and even volume is also not that higher today (Monday)."

Owing to requirement-based participation, the volume in the secondary market remained dull. Deals aggregating INR 68.96 billion were recorded on the National Stock Exchange and BSE combined on Monday, up from INR 84.68 billion Friday. Mutual funds were said to be buying and selling bonds, while corporate entities and banks were seen selling. Insurance companies and pension funds remained majorly on the sidelines, dealers said. Major trading was seen primarily in three- and five-year tenures, they added.

Papers issued by Indian Railway Finance Corp., SBM Bank, Apex Homes Pvt., The Andhra Pradesh Mineral Development Corp., Cholamandalam Investment And Fin. Co., Power Finance Corp., Telangana State Industrial Infrastructure Corp., National Bank For Agriculture And Rural Development, and Muthoot Capital Services were traded most on the exchanges Monday.

Merchant bankers speculated that certain mutual funds are selling their bond holdings in secondary market to create space in their portfolios for upcoming primary market bond issues. Additionally, these MFs are choosing to maintain cash reserves in anticipation of better opportunities emerging in the near future.

On the primary market side, several companies were due to raise funds Monday with one-state owned entity. Godrej Seeds and Genetics Ltd. raised INR 20 billion at a coupon of 7.68%. On Tuesday, a good number of non-banking financial companies are lined up to raise funds from corporate debt market with one-state owned entity through their respective bonds aggregating to over INR 69 billion. India Infrastructure Finance Co. Ltd. plans to raise up to INR 23.40 billion through bonds maturing in five years. "We expect IIFCL will raise funds around 80-82 levels (6.80-6.82%) tomorrow (Tuesday)," a fund manager at a mid-sized mutual fund house said. 

SBI Cards and Payment Services Ltd. will also tap the market to raise up to INR 20 billion through bonds maturing on Jul. 28, 2028. Kotak Mahindra Prime has invited bids to raise INR 4 billion though April 2028 bond reissue. MAS Financial Services, Nirmal Bang Securities, Earlysalary Services, and Edel Finance Co. will also tap the bond market on Tuesday. Going forward, merchant bankers expect primary market issuances to increase in the corporate debt market. 

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 1.00 million were traded at a weighted average yield of 7.0486%, according to data from the Reserve Bank of India's Negotiated Dealing System–Order Matching System Monday.

* INR 1.00 million of Uttar Pradesh's bond maturing in 2028 was dealt at a weighted average yield of 7.0486%.

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.