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Informist, Tuesday, Nov. 25, 2025

By J. Navya Sruthi and Vaishali Tyagi

MUMBAI/NEW DELHI – Volume in the secondary market for corporate bonds fell due to a spur in issuances in the primary market, dealers said, leaving the yields on five- and 10-year bonds steady for the day. However, yields on three-year bonds ended slightly lower as volume in the secondary market picked up after issuances in the primary market, dealers said. 

Yields on three-year bonds fell by two basis points as there was short-covering in the market, dealers said. They said that investors who sold bonds earlier had bought them back in the secondary market as the National Bank for Agriculture and Rural Development pulled back its issuance. 

Overall, secondary market volume picked up from the previous day, but still remained on the lower side. Tuesday, deals aggregating to INR 70 billion were recorded on the National Stock Exchange and BSE combined, higher than INR 54.34 billion Monday, but sharply down from 134 billion seen Friday. 

Dealers attributed tepid participation in the secondary market to higher issuances in the primary market. Mutual funds, banks, and insurance companies were on the buying side. However, later during the day, volumes picked up as a few issuances were withdrawn from the primary market, they added.  

During the day, the NABARD and Power Finance Corp. Ltd. had withdrawn their issuances as investors demanded higher coupons and issuers were expecting lower rates after the Reserve Bank of India's governor's dovish comments Monday, dealers said. They also added that these issuances were scrapped because yields on shorter-end bonds were lower, which did not draw investor interest. 

Of the total INR 251.10 billion scheduled for Tuesday, NABARD and PFC's issuances aggregated to INR 100 billion, which were pulled back. NABARD was scheduled to raise INR 70 billion by issuing Feb. 23, 2029 bonds and PFC had planned to raise another INR 30 billion through reissue of bonds maturing on Apr. 13, 2029. 

The RBI Governor Sanjay Malhotra said Monday in an interview with Zee Business that India's recent macroeconomic indicators suggest that there is potential for more rate cuts. In the October policy, the Monetary Policy Committee had clearly stated that there is potential to cut rates further, the RBI governor said in the television interview. 

Meanwhile, the Small Industries Development Bank of India Tuesday raised INR 59.35 billion at a coupon of 6.74%. PFC set a coupon of 7.08%, payable annually, and accepted bids aggregating to INR 30 billion. Axis Bank Ltd. set a coupon of 7.27%, payable annually, and accepted bids aggregating to INR 50.00 billion Tuesday. Dealers said coupons of PFC, SIDBI and Axis Bank were in line with the market's expectations.

For Wednesday, issuances aggregating to INR 56.45 billion are scheduled. HDB Financial Services plans to raise INR 6.5 billion through the reissue of three bonds, Aseem Infrastructure Finance to raise up to INR 2 billion through reissue of Jan.18, 2029 bonds, NIIF Infrastructure Finance to raise up to INR 12 billion through May 26, 2033 bonds, and India Infradebt to raise up to INR 20 billion through May 27, 2031 bonds. Other than these major issues, Bajaj Auto Credit, Ugro Capital, and Kogta Financial have also invited bids to raise funds on Wednesday. 

Papers issued by Vivriti Capital, Earlysalary Services, REC, Muthoot Microfin, Indian Railway Finance Corp., Krazybee Services, Shri Ram Finance Corp., Akara Capital Advisors, Anand Rathi Global Finance, Indel Money, Keertana Finserv, The Andhra Pradesh Mineral Development Corp., LIC Housing Finance, Muthoottu Mini Financiers, PFC, Sammaan Capital, Telangana State Industrial Infrastructure Corp., NABARD, Muthoot Capital Services, Shriram Finance, and Navi Finserv were traded the most on the exchanges Tuesday.

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds aggregating to INR 11.10 million were traded, according to data on the RBI's Negotiated Dealing System-Order Matching system Tuesday.

* INR 1.10 million of Tamil Nadu's 7.75%, 2032 bond was dealt at 7.4013%

* INR 10.00 million of Andhra Pradesh's 7.35%, 2029 bond was dealt at 7.2749%

BENCHMARK LEVELS FOR CORPORATE BONDS

End

Edited by Deepshikha Bhardwaj

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