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Informist, Friday, Oct. 17, 2025

By Vaishali Tyagi

MUMBAI – Rates in the short-term debt market remained steady Friday due to low primary issuances and subdued secondary market activity as market participants remained on sidelines, engaging only in need-based trades. Money markets are closed on Tuesday and Wednesday for Diwali.

Primary market issuances were low as there were very few quotes and many deals could not be concluded. Activity in the secondary market was also very low, dealers said. People are already in holiday mood, so trades were limited. Market participants are avoiding aggressive bets ahead of the weekend and next week's holidays for Diwali, a dealer at a brokerage firm said.

There were no issuances of certificates of deposit. On Thursday, CDs aggregating INR 31 billion were issued, with Bank of Baroda being the largest issuer. Dealers expect CD issuances to remain subdued until credit disbursal pick up. Banks were largely absent in secondary market with only one or two banks fulfilling their internal requirements, dealers said.

Activity is expected to pick up after the Diwali holidays, dealers said. Indicative rates for three-month CDs were 5.86-5.97%, unchanged from Thursday. Yields on papers maturing in six months and one year also remained unchanged at 6.12–6.22% and 6.38–6.45%, respectively, dealers said.

There was only one CP issuance Friday. Poonawalla Fincorp was the only issuer. The company borrowed INR 2.50 billion at 6.63% through a CP maturing on Jan. 23. On Thursday, INR 27.50 billion was raised through CPs. The indicative rates for CP remained unchanged. Rates on three-month CP issued by manufacturing companies were 5.95-6.05%, unchanged from Thursday. Rates on similar maturity papers issued by non-banking financial companies also were unchanged at 6.65-6.75%.

Total turnover in the secondary market was down significantly from Thursday. Most of the activity in the secondary market was concentrated in papers maturing in three months, they said. Total INR 35.35 billion of CDs were traded in the secondary market, against INR 57.95 billion Thursday. In the case of CPs, the turnover was INR 68.20 billion, down from INR 93.05 billion Thursday.

--Primary market

* Poonawalla Fincorp raised funds through CPs

--Secondary market

* HDFC Bank's CD maturing Monday was traded once at a weighted average yield of 5.6236%

* Reliance Jio Infocomm's CP maturing Monday was traded four times at a weighted average yield of 5.6383%

The following were the volumes, in INR billion, in the secondary market for short-term debt at 1700 IST, as detailed by the Clearing Corp. of India's F-TRAC platform:

End

Edited by Ashish Shirke

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