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Informist, Tuesday, Sept. 2, 2025

By Vaishali Tyagi

MUMBAI – Corporate bond yields in the secondary market closed steady Tuesday, driven by lack of fresh market triggers which kept traders on sidelines, dealers said. Trading activity was mixed, with mutual funds reshuffling their portfolios and other participants engaging in need-based deals. Dealers added that selling across various tenures was offset by buying demand, with all transactions being driven by specific requirements rather than any aggresive bet. 

"Market was mostly flat (in yield terms) today (Tuesday), there were participants from all segments, mutual funds, insurance companies etc., which was also seen in volume and activity was but there is no positive news so that people place can place calculated and aggressive bets so that we can see some rally in the market, but there is nothing such happening," a dealer at a mid-sized brokerage firm said. 

According to dealers, the corporate bond market is not seeing much movement, with no significant triggers to influence sentiment. Trading activity were largely on lower side for the past few days in both secondary and primary market with participants adopting a cautious stance due to lack of positive cues. Traders remained wary about taking new positions, particularly in long-term papers, which were seen as riskier at current market conditions. "At this point of time, market is very uncertain and people do not know... whether to take position at this point of time and whether it will benefit them or not," an arranger at a big-sized brokerage firm said.

In the secondary market, deals aggregating to INR 123.35 billion were recorded on the National Stock Exchange and BSE combined on Tuesday, higher than INR 70.39 billion on Monday. Mutual funds were the most actively selling and buying papers in shorter-tenure bonds in order to reshuffle their portfolios, dealers said. Banks and insurance companies were active on the buying sides in shorter-tenure bonds in light demand. A handful of arrangers were seen selling bonds in lower volume. Pension funds and corporate entities were largely absent from the market Tuesday.

Papers issued by ural Electrification Corp., The Andhra Pradesh Mineral Development Corp., Power Finance Corp., Telangana State Industrial Infrastructure Corp., National Bank For Agriculture And Rural Development, Tata Capital Financial Services, Navi Finserv, Adani Enterprises, Uttar Pradesh Power Corp., and Kosamattam Finance were the most traded papers on exchanges on Tuesday.

In the primary market, activity remained muted with issuances aggregating to only around INR 5.8 billion Tuesday, as issuers await more favourable funding conditions to raise funds through corporate debt market, dealers said. SMFG India Credit Co. raised INR 1 billion through a five-year bond. Wednesday, bond issuances in the primary market will remain on lower side aggregating to INR 6 billion.

Overall activity remained lower in primary market of corporate debt market. Vivriti Capital Ltd. plans to raise INR 5 billion through a three bond issuances. Krazybee Service Pvt. Ltd will raise INR 1 billion through March 2027 bond from corporate debt market. Dealers said many corporates and state-owned entities are on the backfoot and abstaining from raising funds through corporate bond market. "PSUs (public-sector undertakings) are not coming with their issuances right now because they know, they will not get good response in terms of coupon...therefore they are taking their time to tap the bond market for fundraising."

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 164.30 million were traded at a weighted average yield of 6.6019-7.20125%, according to data from the RBI's Negotiated Dealing System-Order Matching System Tuesday.

* INR 68.00 million of Jharkhand's 8.62%, 2030 bond was dealt at a weighted average yield of 7.2013%

* INR 25.20 million of Uttar Pradesh's 8.71%, 2028 bond was dealt at a weighted average yield of 6.7523%

* INR 13.00 million of Uttar Pradesh's 8.38%, 2027 bond was dealt at a weighted average yield of 6.6019%

* INR 13.00 million of Uttar Pradesh's 8.70%, 2027 bond was dealt at a weighted average yield of 6.6271%

* INR 11.30 million of Telangana's 8.08%, 2029 bond was dealt at a weighted average yield of 6.9010%

* INR 10.00 million of Punjab's 8.66%, 2028 bond was dealt at a weighted average yield of 6.7519%

* INR 7.50 million of Chhattisgarh's 8.70%, 2031 bond was dealt at a weighted average yield of 7.0003%

* INR 5.00 million of Telangana's 8.04%, 2031 bond was dealt at a weighted average yield of 6.9326%

* INR 3.00 million of Tamil Nadu's 7.75%, 2032 bond was dealt at a weighted average yield of 7.0501%

* INR 2.50 million of Tamil Nadu's 7.75%, 2028 bond was dealt at a weighted average yield of 6.7011%

* INR 2.00 million of Tamil Nadu's 7.74%, 2031 bond was dealt at a weighted average yield of 7.0003%

* INR 1.80 million of Tamil Nadu's 7.74%, 2032 bond was dealt at a weighted average yield of 7.0503%

* INR 1.00 million of Tamil Nadu's 7.74%, 2026 bond was dealt at a weighted average yield of 6.0863%

* INR 1.00 million of Tamil Nadu's 7.78%, 2031 bond was dealt at a weighted average yield of 7.1004%

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

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