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Informist, Friday, Oct. 31, 2025

By Vaishali Tyagi and Janwee Prajapati

MUMBAI – Yields on corporate bonds in the secondary market moved in a narrow range Friday, as traders focused on need-based trade, dealers said. "At the start of the day, traders were active in the market, with some looking for specific papers like AAA-rated short-term instruments, deals were limited and of small quantum," a dealer at a mid-sized brokerage firm said. "Yields saw some movement, fluctuating 2-3 basis points, but ultimately settled at Thursday's levels as participants from all segments participated throughout the day."

Dealers said many market participants adopted a cautious stance and refrained from taking significant positions in the absence of triggers. Towards the end of market hours, the market was primarily driven by specific buyer and seller requirements, with only a few participants actively trading. Overall, there is a wait-and-watch approach among traders, dealers said. 

Some traders remained focused on the primary market due to a key bond issuance in the primary market. In the primary market Friday, companies issued bonds worth INR 52 billion were scheduled to raise funds, higher than the INR 36.77 billion of bonds issued Thursday. Market participants shifted their focus to Power Finance Corp.'s major bond issuance. Power Finance Corp. Ltd. raised INR 49.86 billion through two bonds – INR 25.00 at 6.87% through bonds maturing on Oct. 15, 2030 and INR INR 24.86 billion at a coupon of 7.10% through bonds maturing on Nov. 12, 2040. Dealers said the coupon of both issuances were in line with expectation.

On Monday, issuances aggregating to INR 14.90 billion are scheduled. IRB InvIT (Infrastructure Investment Trust) Fund plans to raise up to INR 11.50 billion through three bonds with different maturities. Muthooth Microfin Ltd. plans to raise up to INR 1.25 billion through the issuance of November 2027 bonds. Apart from these, Clix Capital Services Pvt Ltd. and Muthoot Fincorp Ltd. will also borrow funds via bonds.  

In the secondary market Friday, deals aggregating INR 90.11 billion were reported on the National Stock Exchange and BSE combined, marginally higher than INR 84.21 billion Thursday. Dealers said mutual funds have been the most active participants in the market over the past few sessions, trading various papers to book profits. In contrast, banks have shown limited activity, having already invested in state bonds at a recent auction. Pension funds and insurance companies have also been selective, only participating in the market for specific papers that meet their requirements.

Papers issued by HDB Financial Services Ltd, Kerala Infrastructure Investment Fund Board, National Bank For Agriculture And Rural Development, Piramal Finance Ltd., Capri Global Capital Ltd., and the Andhra Pradesh Mineral Development Corp. Ltd., were traded the most on exchanges Friday.

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 21.60 million were traded across four bonds in single trades, according to data on the RBI's Negotiated Dealing System-Order Matching System Friday.

* INR 7.50 million of Chhattisgarh's 8.70%, 2031 bond was dealt at 7.0222%

* INR 11.30 million of Telangana's 8.08%, 2029 bond was dealt at 6.5452%

* INR 1.80 million of Tamil Nadu's 7.74%, 2032 bond was dealt at 6.991%

* INR 1.00 million of Tamil Nadu's 7.78%, 2031 bond was dealt at 7.0427%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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