India Corporate Bonds
Yields steady, seen in range till MPC meet outcome
This story was originally published at 20:53 IST on 18 November 2025
Register to read our real-time news.Informist, Tuesday, Nov. 18, 2025
By J. Navya Sruthi and Vaishali Tyagi
MUMBAI – Yields on the corporate bonds in the secondary market moved in a narrow range throughout the day and ended steady from the previous day on the lack of fresh cues in domestic and global markets, dealers said. They said rates are likely to remain in a range till the Reserve Bank of India's Monetary Policy Committee meeting outcome, due in December.
Volumes in the secondary market and issuances in the primary market will start picking up pace only after the RBI's December meeting, a dealer at a brokerage firm said. "Traders are currently cautious and will take positions based on the policy outcome," the dealer said. There is lack of "great" data points and geopolitical news for the markets to react to, so there is just "need-based trade happening", said Killol Pandya, head- fixed income, JM Financial Mutual Fund.
Market participants also await the India-US trade deal and September quarter GDP print for cues on domestic interest rates. A trade deal may reduce bets on an RBI rate cut in December. Some traders have already given up those bets as they expect GDP growth to beat RBI estimates for Jul-Sept. Further, reduced bets for an interest rate cut by the US Federal Reserve in the December meeting is also pushing down hopes of a rate-cut by the RBI.
According to the CME FedWatch tool, only 46.4% of traders expect a 25-basis-point rate cut by the US Fed in the December meeting, compared with 66.9% a week ago and 93.7% a month ago. Currently, 53.6% of traders are expecting the US Fed to leave key interest rates unchanged at 3.75-4.00% at the upcoming meeting, which is due next month.
In the secondary market, deals aggregating to INR 91.41 billion were recorded on the National Stock Exchange and BSE combined, lower than INR 109.47 on Monday. While there was tepid activity in the market, only mutual funds were actively buying in the market Tuesday, dealers said. Banks and other participants remained on sidelines on Tuesday due to no triggers in the market. "Traders need at least some data point or something to reach on or to take bets...but there are no cues at all," a dealer at a brokerage firm said. "Even gilts (government bonds) market is not moving beyond a range to give cues these days."
Papers issued by Vivriti Capital Ltd., Earlysalary Services Pvt. Ltd., Rural Electrification Corp. Ltd., Indian Railway Finance Corp. Ltd., Krazybee Services Pvt Ltd., Shri Ram Finance Corp. Pvt Ltd., Akara Capital Advisors Pvt Ltd., Indel Money Ltd., National Bank For Financing Infrastructure And Development, Keertana Finserv Pvt Ltd., Ambium Finserve Pvt Ltd., Muthoottu Mini Financiers Ltd., Cholamandalam Investment And Fin. Co. Ltd., and The Andhra Pradesh Mineral Development Corp. Ltd. were traded the most on exchanges Tuesday.
In the primary market, companies issued bonds worth INR 10.75 billion Tuesday, half of the INR 20.25 billion seen Monday. Wednesday, issuances aggregating to INR 26.00 billion are scheduled. Muthoot Finance Ltd., plans to raise INR 17.50 billion Tuesday through reissuance of November 2028 bonds and issuance of January 2031 bonds. This issuance is around 67% of the total issuances of INR 26.0 billion, scheduled for Wednesday. Nuvama Wealth Finance Ltd., 360 ONE Prime Ltd., Hero Fincorp Ltd., Mahindra Rural Housing Finance Ltd., and Midland Microfin Ltd., have also invited bids to raise funds Wednesday.
UDAY BONDS
In the secondary market, Ujwal DISCOM Assurance Yojana bonds of Uttar Pradesh aggregating to INR 1 million were traded, according to data on the RBI's Negotiated Dealing System-Order Matching system Tuesday.
* INR 1 million of Uttar Pradesh's 8.70%, 2031 bond was dealt at 7.1583%
BENCHMARK LEVELS FOR CORPORATE BONDS
Tenure | Tuesday | Monday |
Three-year | 6.72-6.75% | 6.72-6.76% |
Five-year | 6.86-6.87% | 6.83-6.87% |
10-year | 7.14-7.17% | 7.13-7.16% |
End
Edited by Akul Nishant Akhoury
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