More Stories

Informist, Tuesday, Oct. 14, 2025

By Vaishali Tyagi

MUMBAI – Yields on corporate bonds ended steady in the secondary market Tuesday because most market participants limited their activity to meeting basic portfolio requirements, dealers said. Some activity was there but it was insignificant to move the yields, they said.

"We can say there was decent activity but yields remained range bound with banks and mutual funds most active, but traders were focused on primary market as there is a flurry of bond issuances...not big amount but key issuers are coming to the market," a dealer at a mid-sized brokerage firm said. "Market participants continued to focus on the primary market, as several non-banking financial and some key marquee issuers tapped the bond market."

In the primary market, companies issued bonds worth INR 194.96 billion Tuesday, significantly higher than INR 30.75 billion raised on Monday. On Wednesday, issuances aggregating over INR 60.0 billion are scheduled. Muthoot Finance has invited bids to raise a whopping INR 30.0 billion through two bonds of different maturities. Interise Trust (I) and infrastructure investment trust have invited bids to raise INR 20.74 billion through two bonds. Muthoot Finance has invited bids to raise a whopping INR 30 billion through two bonds of different maturities. Jana Small Finance Bank plans to raise INR 2.5 billion through subordinated tier-II bonds. Among other NBFCs, Vedika Credit Capital, Moneyboxx Finance, Kolte-Patil Developers and Sammaan Capital plan to raise funds through bonds. 

In the secondary market, deals aggregating to INR 101.96 billion were recorded on the National Stock Exchange and BSE combined Tuesday, significantly lower than INR 83.65 billion on Monday. Mutual funds and banks were actively buying and selling papers across various tenures, with a more pronounced buying demand in shorter-tenure papers. Companies were active in the secondary market to buy bonds. A few insurance companies, along with a handful of pension funds, were active in buying and selling mid-segment tenure papers. The longer-end bonds remained sluggish, with minimal trading activity.

Dealers said there was mixed activity in terms of tenures and trades in the corporate bond market Tuesday. Some securities saw selling and buying activity from mutual funds and banks. Power Finance Corp's 2027 paper attracted good demand, while National Bank For Agriculture And Rural Development's January 2028 and March 2028 paper were traded the most in the 2028 segment.

Papers issued by Vivriti Capital, REC, Akara Capital Advisors, The Andhra Pradesh Mineral Development Corp., Power Finance Corp., Telangana State Industrial Infrastructure Corp., Power Finance Corp. and NABARD were traded the most on bourses Tuesday.

Dealers anticipate a surge in primary corporate bond market activity by the end of the week, driven by upcoming large issuances and the approaching festive season. Recent bond issuances have been fuelled by specific requirements, but market participants expect a significant pickup in activity soon.

Market participants are eagerly awaiting the release of the minutes of the Monetary Policy Committee meeting that ended on Oct. 1, expecting further insight into the Reserve Bank of India's potential rate outlook. Traders anticipate a 25-basis-point rate cut in the December policy meeting, pumped by the September CPI inflation print, released Monday which came at 1.5%, the lowest since June 2017. However, traders are also looking for clarity on key economic indicators, including US-India trade deals and GDP growth numbers, to confirm the likelihood of a rate cut.

UDAY BONDS

==========

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 63.50 million were traded at a weighted average yield of 6.6944-6.8295%, according to data on the RBI's Negotiated Dealing System-Order Matching System Tuesday.

* INR 18.00 million of Uttar Pradesh's 8.38%, 2027 bond was dealt at a weighted average yield of 6.6944%

* INR 13.00 million of Uttar Pradesh's 8.70%, 2027 bond was dealt at a weighted average yield of 6.6944%

* INR 15.50 million of Tamil Nadu's 7.75%, 2028 bond was dealt at a weighted average yield of 6.7956%

* INR 5.00 million of Tamil Nadu's 8.04%, 2029 bond was dealt at a weighted average yield of 6.8295%

* INR 12.00 million of Andhra Pradesh's 7.35%, 2030 bond was dealt at a weighted average yield of 6.7155%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

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.