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Informist, Thursday, Nov. 27, 2025

By J. Navya Sruthi and Vaishali Tyagi

MUMBAI/NEW DELHI – Yields on corporate bonds in the secondary market moved in a narrow range Thursday and ended steady for lack of fresh cues in domestic markets, dealers said. They said the market was currently focused on need-based trading and added that they await GDP numbers for Jul-Sept and the Reserve Bank of India's Monetary Policy Committee meeting outcome later next week. 

"There was more volume in three and five-year bonds on hopes of a rate cut after (RBI) governor's comments," an analyst at a brokerage firm said. Mostly mutual funds and banks were seen in the market, the analyst said.

RBI Governor Sanjay Malhotra Monday said India's recent macroeconomic indicators suggested 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 79.19 billion were recorded Thursday on the National Stock Exchange and BSE combined, sharply lower than INR 132.90 billion seen Wednesday. Dealers said mutual funds were actively buying and selling in the market. More volume in short-term bonds is because of the month-end porfolio churning by the mutual funds amid redemption pressures, dealers said. 

"NABARD 10-year bonds were not traded much, as supply is less. There is more volume in IRFC (Indian Railway Finance Corp. Ltd.) and PFC (Power Finance Corp.). Yields were 7.10% on IRFC and 7.08% on PFC," a dealer at a state-owned bank said.  

Papers issued by Vivriti Capital, Earlysalary Services, REC, HDFC Bank, Indian Railway Finance Corp., Power Finance Corp., LIC Housing Finance, Krazybee Services, Shri Ram Finance Corp., Anand Rathi Global Finance, Indel Money, Keertana Finserv, The Andhra Pradesh Mineral Development Corp., Muthoottu Mini Financiers, Sammaan Capital, Telangana State Industrial Infrastructure Corp., National Bank for Agriculture and Rural Development, Muthoot Finance, National Bank For Agriculture And Rural Development, Navi Finserv, and Tata Capital Financial Services were traded the most on the exchanges Thursday.

Meanwhile, in the primary market, issuances aggregating to INR 121.10 billion are scheduled for Friday, against INR 138.55 billion Thursday. State-owned lender Canara Bank plans to raise up to INR 35 billion through Basel-III compliant additional tier-1 bonds. The bank had initially planned to raise funds on Tuesday but postponed it to Friday.

Bharti Telecom will also raise INR 85.0 billion through two different bonds Friday. Capri Global Capital and Sadbhav Gadag Highway also have invited bids Friday.   

Thursday, ICICI Prudential Life Insurance Co. Ltd. set a coupon of 7.69%, payable annually, on its 10-year bonds maturing on Nov. 28, 2035, and accepted bids aggregating to INR 11.65 billion. Indian Railway Finance Corp. Ltd. set a cut-off yield of 6.80% on its zero-coupon bonds maturing in 10 years and accepted bids aggregating to INR 29.82 billion. ICICI Bank also set a coupon of 7.40%, payable annually, on the issuance of 15-year Basel-III compliant additional tier-II bonds maturing on Nov. 28, 2040, and accepted bids aggregating to INR 39.45 billion. 

Dealer said market participants await Jul-Sept GDP growth data due Friday for more cues on rate cut which can provide some guidance for government bond and corporate debt markets. Market participants price in a 25-basis-point rate cut in the December Monitory Policy Committee meeting. According to an Informist poll, the GDP growth for the quarter was 7.2%. 

Thursday, the finance ministry said in its Monthly Economic Review for October that India's GDP likely grew in the range of 7.0% to 7.5% in the September quarter. GDP growth in the range of 7.0–7.5% indicates continued strength in underlying economic activity, the finance ministry said. India's real GDP growth was 7.8% and nominal GDP growth was 8.8% in the June quarter, according to the statistics ministry. 

UDAY BONDS

In the secondary market, three Ujwal DISCOM Assurance Yojana bonds aggregating to INR 19.50 million were traded, according to data on the RBI's Negotiated Dealing System-Order Matching system Thursday.

* INR 7.50 million of Chhattisgarh's 8.70%, 2031 bond was dealt at 7.0798%

* INR 6.40 million of Tamil Nadu's 7.74%, 2032 bond was dealt at 7.0275%

* INR 3.00 million of Uttar Pradesh's 8.35%, 2029 bond was dealt at 6.7112%

* INR 2.60 million of Uttar Pradesh's 8.49%, 2028 bond was dealt at 7.147%

BENCHMARK LEVELS FOR CORPORATE BONDS

End

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

Edited by Akul Nishant Akhoury

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