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Informist, Friday, Aug. 8, 2025

By Vaishali Tyagi

MUMBAI – Yields in the secondary market remained in a tight range across tenures intra day Friday, before closing steady compared to Thursday, as investors were primarily engaged in requirement-based trades, dealers said. The dearth of fresh cues further led to marginally lower activity, which was reflected in lower volume, they added. Participants shifted their focus to upcoming issuances in the primary market, dealers said. 

"Secondary market activity was relatively moderate today (Friday), as most traders showed us on the basis of their requirement...as post policy people in the market are looking for fresh cues, maybe some data point which can provide some roadmap to investors," a dealer at a mid-sized brokerage firm said. "The primary market is gaining more attention, with a few large issuers raising significant amounts and more expected to follow the queue eventually."

Activity in the primary market is seen picking up next week. On Friday, issuances aggregating INR nearly 24 billion were lined up. NHPC Ltd. raised INR 20.0 billion through its two-year bond. The bond, which was issued at 6.40%, was fully subscribed. NHPC's bond issuance received bids as expected and the coupon was also in line with expectations, traders said.

For Monday, traders are eyeing some big-ticket issuances by GMR Airports and Power Grid Corp. Total issuances lined up for Monday amount to INR 122.75 billion. Power Grid Corp. has invited bids to raise INR 50 billion through a 10-year bond. Market participants expect the coupon to be around 6.95% or slightly higher. "PGC (Power Grid Corp.) is expected to receive good response as it is a state-backed entities bond and people await for such issuances," said the dealer quoted earlier.

GMR Airports will seek bids to raise INR 59 billion through two bonds. Apart from these two, Krazybee Services Pvt. Ltd. is also planning to raise up to INR 4.75 billion through a two-year bond. Neogen Chemicals Ltd., Nuvama Wealth Finance Ltd., Belstar Microfinance Ltd., and Keertana Finserv Pvt. Ltd. are also lined up to raise funds through their respective bond issuances. 

On Friday, deals aggregating to INR 92.93 billion were recorded on the National Stock Exchange and BSE combined, compared with INR 99.44 billion Thursday. Mutual funds and banks were seen buying and selling bonds aggressively in the three-to-five-year segment. A handful of insurance companies were seen buying and selling bonds maturing in one-to-three years while arrangers and primary dealers were largely seen absent from the debt market. The activity was seen primarily in three- and five-year tenures, dealers said. 

Bonds issued by REC, Housing And Urban Development Corp., HDFC Bank, Indian Railway Finance Corp., Apex Homes, Aditya Birla Digital Fashion Ventures, LIC Housing Finance, and Power Finance Corp. were traded the most on exchanges.

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 28.30 million were traded at a weighted average yield of 6.1877%-6.9615%, according to data from the RBI's Negotiated Dealing System-Order Matching System.

* INR 15.00 million of Haryana's 8.21%, 2026 bond was dealt at a weighted average yield of 6.9615%

* INR 7.00 million of Telangana's 7.96%, 2032 bond was dealt at a weighted average yield of 6.7170%

* INR 2.80 million of Tamil Nadu's 7.75%, 2031 bond was dealt at a weighted average yield of 6.7583%

* INR 2.00 million of Jharkhand's 8.72%, 2031 bond was dealt at a weighted average yield of 6.7490%

* INR 1.50 million of Rajasthan's 8.19%, 2026 bond was dealt at a weighted average yield of 6.1877%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

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

Edited by Avishek Dutta and Deepshikha Bhardwaj

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