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Informist, Wednesday, Nov. 26, 2025

By J. Navya Sruthi and Vaishali Tyagi

MUMBAI/NEW DELHI – Yields on three-year corporate bonds ended lower by 2 basis points in the secondary market Wednesday due to firm demand before the December Monitory Policy Committee meeting, dealers said. However, yields on five- and 10-year bonds remained steady from the previous day on lack of fresh cues and lower volumes, they said. 

"Today (Wednesday) mutual funds were buying 3-year papers on rate cut hopes in December, which had weighed on yields," a dealer at a brokerage said. Yields on the three-year bonds fell for the second consecutive day following the Reserve Bank of India governor's dovish comments in a telivision interview. 

RBI Governor Sanjay Malhotra Monday said India's recent macroeconomic indicators suggested that there was potential for more rate cuts. The Monetary Policy Committee had clearly stated in the October policy statement that there was potential to cut rates further, the RBI governor said in an interview with the ZEE Business news channel. The central bank will hold its bi-monthly policy meeting on Dec. 3-5.

In the secondary market, deals aggregating to INR 132.90 billion were recorded Wednesday on the National Stock Exchange and BSE combined, sharply higher than INR 69.90 billion seen Tuesday. Mutual funds were major buyers in the three-year bonds segment and banks were selling to book profits. 

Papers issued by Vivriti Capital, Earlysalary Services, REC, HDFC Bank, Indian Railway Finance Corp., State Bank of India, Krazybee Services, Shri Ram Finance Corp., Akara Capital Advisors, Indel Money, Sammaan Capital, Keertana Finserv, The Andhra Pradesh Mineral Development Corp., LIC Housing Finance, Muthoottu Mini Financiers, Telangana State Industrial Infrastructure Corp., National Bank for Agriculture and Rural Development, Muthoot Finance, Navi Finserv, Muthoot Fincorp, Small Industries Development Bank of India, UGRO Capital, and Sundaram Finance were traded the most on the exchanges Wednesday.

Meanwhile, in the primary market, issuances aggregating to INR 138.55 billion are scheduled for Thursday, up 40% from INR 56.45 billion Wednesday. India Infradebt has raised INR 16.50 billion by issuing bonds maturing on May 23, 2031. The issuer had planned to raise INR 20 billion through the issuance. 

Thursday, ICICI Bank plans to raise up to INR 40 billion through the issuance of tier-II bonds maturing on Nov. 28, 2040. ICICI Prudential Life Insurance Co. will raise up to INR 12 billion through 10 year bonds. Shriram Finance Ltd. will also raise up to INR 5 billion through May 3, 2029 bonds. Muthoot Finance plans to raise up to INR 10 billion through Feb. 22, 2029 bonds, and Indian Railway Finance Corporation Ltd. to raise up to INR 50 billion through 10-year bonds. 

State-owned lender Canara Bank plans to raise up to INR 35 billion through Basel-III compliant additional tier-1 bonds and has invited bid for the same on Friday. The bank had initially planned to raise funds on Tuesday, but postponed it to Friday. "They (Canara Bank) were expecting yields to fall on rate cut hopes so they have postponed it (issuance)," the dealer said.  

UDAY BONDS

In the secondary market, three Ujwal DISCOM Assurance Yojana bonds aggregating to INR 11.40 million were traded, according to data on the RBI's Negotiated Dealing System-Order Matching system Wednesday.

* INR 6.40 million of Tamil Nadu's 7.74%, 2032 bond was dealt at 7.0298%

* INR 3.00 million of Andhra Pradesh's 7.35%, 2029 bond was dealt at 7.0485%

* INR 2.00 million of Uttar Pradesh's 8.49%, 2028 bond was dealt at 7.1639%

BENCHMARK LEVELS FOR CORPORATE BONDS

Edited by Akul Nishant Akhoury

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