More Stories

Informist, Thursday, Oct. 30, 2025

By Vaishali Tyagi

MUMBAI – Yields on corporate bonds in the secondary market ended steady Thursday as traders refrained from placing aggressive bets due to a lack of fresh domestic or global cues, dealers said. Trading activity across all entities was limited to portfolio requirements, leaving yields unchanged, they added. "Overall, the volume is very poor in the corporate bond market these days. It goes up and down on a daily basis, but it is only a marginal improvement or decline," a dealer at a brokerage firm said. "Yields (in corporate bond market) are mostly range-bound these days... it is just 1-2 basis points here and there."

Dealers said yields remained steady as most market participants shifted their focus to Power Finance Corp.'s major bond issuance, scheduled for Friday. Some mutual funds were seen selling to raise cash for investments in the primary market, they said. Power Finance Corp. is planning to raise up to INR 50 billion through two bonds. It plans to raise up to INR 25 billion through bonds maturing on Oct. 15, 2030 and another INR 25 billion through bonds maturing on Nov. 12, 2040. 

"Traders keenly wait for papers like PFC (Power Finance Corp.), NABARD (National Bank For Agriculture And Rural Development), PGC (Power Grid Corp.), like papers from big state-owned entities... they get a good response," the dealer quoted above said. The dealers said he expects the yield on PFC's 15-year paper to be around 7.15-7.25%, and on the 5-year bond, around 6.70-6.80%.

In the primary market Thursday, companies issued bonds worth INR 36.77 billion, higher than the INR 15.75 billion issued Wednesday. Most of the companies which raised funds were non-banking and financial companies and housing companies Thursday. 

Friday, issuances aggregating to INR 52.00 billion are scheduled. Apart from Power Finance Corp., HDB Financial Services has invited bids to raise INR 1.50 billion through June 2035 bonds. Mufin Green Finance will also borrow funds via bonds.  

Market participants said some investors were seen reshuffling their portfolios and were demanding papers on which they found levels lucrative. 

Mutual funds were seen buying and selling shorter-tenure bonds, dealers said. Insurance companies were active on the buying side of longer-term bonds, while a few banks also bought and sold bonds maturing in up to three years, dealers said. Other participants, such as pension funds and corporates, were largely absent from the market, dealers said. In the secondary market Thursday, deals aggregating INR 84.21 billion were reported on the National Stock Exchange and BSE combined, lower than INR 118.40 billion Wednesday.

Papers issued by Vivriti Capital, Rural Electrification Corp., HDFC Bank, Indian Railways Finance Corp., Krazybee Services, Akara Capital Advisors, Western Capital Advisors, and Keertana Finserv traded the most on exchanges Thursday.

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 50.70 million were traded across five bonds in single trades, according to data on the RBI's Negotiated Dealing System-Order Matching System Thursday.

* INR 25.40 million of Uttar Pradesh's 8.71%, 2028 bond was dealt at 6.8807%

* INR 3.50 million of Uttar Pradesh's 8.49%, 2028 bond was dealt at 6.1226%

* INR 3.00 million of Uttar Pradesh's 8.35%, 2029 bond was dealt at 6.7886%

* INR 11.30 million of Telangana's 8.08%, 2029 bond was dealt at 6.5585%

* INR 7.50 million of Chhattisgarh's 8.70%, 2030 bond was dealt at 7.0309%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

With inputs from Kabir Sharma

Edited by Saji George Titus

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.