More Stories

Informist, Friday, Aug. 29, 2025

By Vaishali Tyagi

MUMBAI – Yields on corporate bonds moved in a narrow range in the secondary market Friday as most participants limited their activity to meeting basic portfolio requirements, dealers said. A subdued trading activity from mutual funds and banks contributed to the stability in corporate bond yields, they said.

The market witnessed subdued participation from dealers due to festival Ganesh Chaturthi holidays, compounded by the last working day of the month and the weekend. Given the reduced activity, it is difficult to predict sentiment for Monday. "We expect volumes to rise, but it's slightly challenging to predict and tell the direction of further movement in the market...we will get clear picture of trading volume next week onwards, once trading resumes after the holidays," a dealer at a brokerage firm said.

Traders in the corporate bond market engaged only in requirement-based trade and adopted a wait-and-watch approach amid persistent uncertainty around yields in the government securities market. "Market participants were hesitant to take bets, and nobody will take bets in this highly uncertain environment around yields (government bond yields), and they are waiting for stability in the G-sec yields, which were expected to settle around 6.52-6.53% levels," the dealer quoted above said. "However, as the day progressed, yields continued to rise, keeping traders on the sidelines. The market saw limited activity, with most traders holding back from taking positions, and only a few buyers and sellers participating in the market on the basis of their requirement."

Yields on government securities ended higher, driven by the lower-than-expected cut-off prices at the weekly gilt auction and a stronger-than-expected GDP growth for the Apr-Jun quarter. The 10-year benchmark 6.33%, 2035 gilt closed at a yield of 6.5678%, against 6.5328% yield, Thursday. The 10-year 2035 gilt yields were volatile during the day.

In the secondary market, deals aggregating to INR 92.35 billion were recorded on the National Stock Exchange and BSE combined on Friday, significantly lower than INR 130.74 billion on Thursday. Mutual funds were seen active on both selling and buying sides across tenures in light volume, dealers said. Banks and insurance companies were active in shorter tenure bonds. Pension funds and corporate entities were also present in the corporate debt market but to meet their portfolio requirements and did not trade aggresively. 

Papers issued by Kerala Infrastructure Investment Fund Board, HDB Financial Services Ltd., Manba Finance Ltd., Muthoot Fincorp. Ltd., UGRO Capital Ltd., Navi Finserv Ltd., National Bank For Agriculture And Rural Development, AYE Finance Pvt Ltd., and The Andhra Pradesh Mineral Development Corp. Ltd., were the most traded papers on exchanges on Friday.

In the primary market, several companies were to raise funds aggregating to INR 35.12 billion through corporate bond issuances on Friday. Tata Power Renewable Energy Ltd. raised INR 15 billion through the issuance of Aug. 31, 2040, bond issue. On Monday, bond issuances in the primary market are very low, aggregating to INR 11.0 billion. Nirmal Bang Financial Services Pvt. Ltd., Powai Lake Residential Pvt. Ltd., and Western Capital Advisors Pvt. Ltd. through their respective bond issuances.

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 7.60 million were traded at a weighted average yield of 6.0762-7.0567%, according to data from the RBI's Negotiated Dealing System-Order Matching System.

* INR 3.00 million of Tamil Nadu's 7.74%, 2026 bond was dealt at a weighted average yield of 6.0762%

* INR 4.60 million of Tamil Nadu's 7.74%, 2032 bond was dealt at a weighted average yield of 7.0567%

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

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.