More Stories

By Janwee Prajapati

MUMBAI – Yields on corporate bonds in the secondary market ended in a narrow range across tenures Tuesday as traders await the Reserve bank of India's October Monetary Policy Meeting outcome Wednesday to gauge the shift in interest rates in the market, dealers said. Most issuers were reluctant to tap the market before the meeting outcome. However, some traders were seen buying across segments but in low volume. 

Most traders are expecting a status quo stance in the MPC meeting while they remain watchful of the tone and commentary of the RBI governor, Sanjay Malhotra, which is expected to pave way for rate cuts in the December MPC meeting.

"There was very limited activity today (Tuesday), some portfolio churning happened but overall it remained dull... in the second half of the day, some buying happened, but that did not move the yields much," a dealer at a brokerage firm said.
 

Mutual funds were seen churning their portfolios and buying short-term corporate bonds to meet the redemption pressure and hedge against the MPC decision Wednesday. 
 

In the secondary market, deals aggregating INR 137.28 billion were recorded on the National Stock Exchange and BSE combined on Tuesday, lower than INR 154.24 billion on Monday. Mutual funds bought and sold papers in the three-year segment. Banks and insurance companies were seen on the buying side across segments in low volume. Corporates and other participants, including pension funds, were largely absent from the market.

Papers issued by Rural Electrification Corp. Ltd., Indian Railways Finance Corp. Ltd., LIC Housing Finance Ltd., Power Finance Corp. Ltd., Telangana State Industrial Infrastructure Corp. Ltd., National Bank For Agriculture and Rural Development, Small Industries Development Bank of India were traded the most Tuesday. 
 

Activity in the primary market remained lacklustre Tuesday. Bond issuances aggregating INR 17.93 billion were lined up. The number of issuers tapping the corporate bond primary market to raise funds remains dull amid uncertainty around the cost of borrowing.

On Wednesday, bond issuances aggregating INR 3.23 billion are scheduled. Kotak Mahindra Prime Ltd. has invited bids to raise INR 3.00 billion through the re-issuance of bonds maturing on Sept.22, 2028. 
 

The primary market's dullness can be attributed to two main reasons, dealers said. "Dullness in the primary market is due to two reasons; one, it has slowed down due to the policy meeting outcome due Wednesday and the other is due to quarter-end (Jul-Sept) which is a usual trend," the dealer quoted above said.

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating INR 82.00 million were traded at a weighted average yield of 6.5028-7.0507%, according to data from the RBI's Negotiated Dealing System-Order Matching System on Tuesday.

* INR 25.20 million of Uttar Pradesh's 8.71%, 2028 bond was dealt at a weighted average yield of 6.7018%

* INR 13.00 million of Uttar Pradesh's 8.70%, 2027 bond was dealt at a weighted average yield of 6.5041%

* INR 13.00 million of Uttar Pradesh's 8.38%, 2027 bond was dealt at a weighted average yield of 6.5028%

* INR 11.00 million of Telangana's 8.08%, 2029 bond was dealt at a weighted average yield of 6.6173%

* INR 10.00 million of Punjab's 8.66%, 2028 bond was dealt at a weighted average yield of 6.7027%

* INR 7.50 million of Chattisgarh's 8.70%, 2030 bond was dealt at a weighted average yield of 7.0507%

* INR 2.00 million of Tamil Nadu's 7.74%, 2031 bond was dealt at a weighted average yield of 7.0505%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

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.