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Informist, Tuesday, Oct. 28, 2025

By Vaishali Tyagi

MUMBAI – Yields on corporate bonds in the secondary market remained in a narrow range Tuesday as participants shifted their focus to the primary market, dealers said. Attention shifted to the primary market as several non-banking finance companies, an infrastructure investment trust, and a state-owned entity tapped the bond market, they said. Activity in the secondary market was limited to requirement-based trades, which kept yields in a tight range, they said.

Earlier in the day, selling from mutual funds and banks led to a rise in yields. However, the rise was short-lived as buying pressure emerged towards the close of trade, particularly from key non-banking finance companies. This pushed yields back to Monday's levels. Dealers said traders across segments were selling to reserve cash for participation in the primary market, as it is expected to gain some momentum.

"Secondary market was mostly positive today (Tuesday) with usual demand and supply transactions, with some banks and mutual funds actively trading (buying and selling) and meeting their requirements," a dealer at a broking firm said. "Some mutual funds remained focused on the primary market as there were a good number of issuances after a week (almost) and they also looked to sell bonds to have cash for upcoming issuances in the primary market."

In the primary market, companies issued bonds worth INR 21.85 billion, slightly higher than INR 15 billion scheduled on Monday. Tuesday, one state-owned entity, ONGC Petro additions Ltd., a subsidiary of Oil and Natural Gas Corp. Ltd., raised INR 4.09 billion at a coupon of 6.99% through five-year bonds maturing Oct. 30, 2030.

According to the bid book accessed by Informist, the company received 39 bids aggregating to INR 25.89 billion in the coupon range of 6.71-7.50%. A dealer at a broking firm said, "Investors wanted higher coupons on bond issuances, as the company was getting INR 8.34 billion at 7.10% and INR 10 billion at 7.19%."

However, the issuer targeted sub-7% yields. With ONGC's guarantee, 6.90-7.10% levels seemed justified. However, since ONGC Petro additions is not a regular issuer, an illiquidity premium was expected, a fund manager at a mutual fund said.

Wednesday, issuances aggregating to INR 15.75 billion are scheduled. Gawar Waranga Highways has invited bids to raise INR 6.25 billion through two bonds. Motilal Oswal Finvest plans to raise INR 3 billion through Oct 2027 bonds. Among other companies, Earlysalary Services, Namra Finance and Toyota Financial Services plan to raise funds through bonds.

In the secondary market Tuesday, deals aggregating to INR 91.67 billion were reported on the National Stock Exchange and BSE combined, higher than INR 72.46 billion Monday. Mutual funds and banks were seen selling bonds across tenures as per their requirements, dealers said. Companies were also active in the secondary market to buy bonds. A few insurance companies and a handful of pension funds were active in buying and selling longer-tenure paper.

Paper issued by Vivriti Capital, REC, Oxyzo Financial Services, Krazybee Services, Akara Capital Advisors, Ambium Finserve, The Andhra Pradesh Mineral Development Corp., Muthoottu Mini Financiers, Cholamandalam Investment and Finance Co., Hinduja Leyland Finance, and Telangana State Industrial Infrastructure Corp. were traded the most on the exchanges Tuesday.

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 6.60 million were traded across two bonds in single trades, according to data on the RBI's Negotiated Dealing System-Order Matching System Tuesday.

* INR 2 million of Jharkand's 8.72%, 2031 bond was dealt at 7.0253%

* INR 4.60 million of Tamil Nadu's 7.74%, 2032 bond was dealt at 6.9437%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

Edited by Deepshikha Bhardwaj

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