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Informist, Thursday, Jul. 31, 2025

By Vaishali Tyagi

MUMBAI – Yields on corporate bonds moved in a narrow range in the secondary market Thursday due to limited activity and requirement-based trading, dealers said. "Even though other markets (foreign exchange market and government securities market) had little impact, our (corporate bond) market did not react much and it was range bound only, however, overall trading activity was not muted today (Wednesday) but it was insignificant to move the yields," a dealer at a mid-sized brokerage firm said. 

Tracking government securities, yields on corporate bonds rose only 1-2 basis points during the day, but ended at Wednesday's levels, dealers said. "Like Wednesday, yields in fixed income market rose 1-2 bps and until something major happens...corporate bond market levels are expected to remain in narrow band," a dealer at another mid-sized brokerage firm said. The yield on the benchmark 10-year 6.33%, 2035 government bond ended at 6.37%, flat against Wednesday.

Dealers said corporate bond market remained majorly unfazed even after the announcent of US tariffs on the Indian imports. US President Donald Trump Wednesday hit India with 25% tariffs, along with a penalty, effective Friday, slightly less than the 26% import duty threatened earlier in April. 

Banks and mutual funds were active on both the buying and selling sides of the bond market across tenures, dealers said. Some insurance companies were also active in the longer-tenure papers, they said. A few private companies and pension funds bought longer and shorter-tenure papers, a few dealers said.

In the secondary market on Thursday, deals aggregating INR 108.38 billion were clocked on the National Stock Exchange and BSE combined, lower than INR 89.54 billion reported on Wednesday. Papers issued by REC, Tata Capital Housing Finance, HDFC Bank, Indian Railway Finance Corp., Apex Homes, Keertana Finserv, The Andhra Pradesh Mineral Development Corp, Muthoottu Mini Financiers, Cholamandalam Investment And Finance Co., were traded the most on the exchanges.

In the primary market, a few companies were due to raise funds Thursday. On Friday, some companies plan to raise funds through corporate bond issuances. Aditya Birla Housing Finance plans to raise INR 15.0 billion through bonds maturing in July 2035. IIFL Home Finance has invited bids to raise INR 2.0 billion through three-year bonds. Apart from these, traders are eyeing issuances by Sammaan Capital and VITP. Going forward, traders expect primary market issuances to increase in the corporate debt market.

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating INR 19.50 million were traded at a weighted average yield of 6.6591-6.7834%, according to data from the Reserve Bank of India's Negotiated Dealing System-Order Matching System Wednesday.

* INR 19.00 million of Rajasthan's bond with coupon of 8.39%, maturing in 2026 was dealt at a weighted average yield of 6.7834%

* INR 0.50 million of Tamil Nadu's bond with coupon of 7.77%, maturing in 2030 was dealt at a weighted average yield of 6.6591%

End

Edited by Akul Nishant Akhoury

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