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Informist, Monday, Nov. 3, 2025

 

By Vaishali Tyagi and Janwee Prajapati

 

MUMBAI – Yields on corporate bonds remained steady in the secondary market Monday, as traders focussed on need-based trade, dealers said. "At the start of the day, traders were active in the market, with mutual funds being on both buying and selling side as liquidity is now back in the system," a dealer at a mid-sized brokerage firm said. "The range has been fairly steady for past some days on liquidity concerns, but now that there is comfortable liquidity in the market, volumes might start keeping up."

 

Dealers said many market participants were cautious of placing aggressive bets due to uncertainty about a rate cut by the Reserve Bank of India's Monetary Policy Committee in the December. Some traders also avoided taking positions ahead of the market holiday on Wednesday. Traders also seemed concerned about the liquidity strain on the system. However, after the RBI announced multiple variable rate repo operations to manage the liquidity in the system, traders expect trade volumes to rise in upcoming days.

 

Some traders are likely to make space in their portfolio for the upcoming issue by NTPC Green Energy Ltd. announced Monday. NTPC Green Energy plans to raise up to INR 15 billion through non-convertible debentures maturing on Nov. 12, 2035 and has invited bids for the same Friday. The base size of the issue is INR 5 billion and has a green shoe option of INR 10 billion. The coupon will be paid annually. Traders also expect issuances by the state-owned entities to increase.

 

In the primary market Monday, companies issued bonds worth INR 14.90 billion, lower than the INR 52 billion issued Friday. Most of the companies that raised funds were non-banking and financial companies and housing companies.

 

On Tuesday, issuances aggregating to INR 26.50 billion are scheduled. Aditya Birla Capital Ltd. plans to raise up to INR 8 billion through the reissuance of two bonds of different maturities. GIC Housing Finance Ltd. plans to raise up to INR 2 billion through bonds maturing on Feb. 29, 2028. and NIIF Infrastructure Finance Ltd. seeks to raise up to INR 8 billion through bonds maturing on Feb. 20, 2031. Apart from these, Paisalo Digital Ltd., Ugro Capital Ltd., Aseem Infrastructure Finance Ltd., and Summit Digitel Infrastructure Ltd. will also borrow funds through bonds.

 

In the secondary market Monday, deals aggregating INR 130.71 billion were reported on the National Stock Exchange and BSE combined, higher than INR 90.11 billion Friday. Mutual funds have been the most active participants in the secondary market over the past few sessions, trading various papers to book profits, dealers said. In contrast, banks have shown limited activity, as they made space in their portfolio for the weekly state government bond auction Tuesday. Pension funds and insurance companies were seen participating in the secondary market only for requirement based trading.

 

Papers issued by National Bank for Agriculture and Rural Development, HDFC Bank Ltd., REC Ltd., Earlysalary Services Pvt. Ltd., Vivriti Capital Ltd., Bajaj Finance Ltd., IIFL Finance Ltd., Muthoot FinCorp. Ltd., UGRO Capital Ltd., Kerala Infrastructure Investment Fund Board, and Kotak Mahindra Prime Ltd. were traded the most on exchanges Monday.

 

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating to INR 46.80 million were traded across three bonds in single trades, according to data on the RBI's Negotiated Dealing System-Order Matching System Monday.

 

* INR 44.00 million of Uttar Pradesh's 8.75%, 2030 bond was dealt at 6.6438%

* INR 1.80 million of Tamil Nadu's 7.74%, 2032 bond was dealt at 6.9888%

* INR 1.00 million of Tamil Nadu's 7.78%, 2031 bond was dealt at 7.0402%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	MONDAY	FRIDAY
Three-year	6.72-6.75%	6.72-6.74%
Five-year	6.84-6.87%	6.84-6.86%
10-year	7.13-7.15%	7.13-7.15%

 

End

 

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

 

Edited by Ashish Shirke

 

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