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Informist, Monday, Dec. 15, 2025

By J. Navya Sruthi

MUMBAI – Yields on corporate bonds ended steady in the secondary market Monday owing to a lack of fresh cues and need-based buying, dealers said. Market participants expect rates to remain range-bound with a slight upward bias in the days to come.

"Yields are flattish as there was not much (tepid) trade," a dealer at a major state-owned bank said. State-owned banks were on the buying side and mutual funds were on the selling side, with volumes seen mainly in three-year bonds, the dealer said.

"The rupee (depreciation) impact can be seen tomorrow (Tuesday), yields may be slightly higher," the dealer said. After falling to a record low of 90.7900 a dollar during the day, the Indian currency settled at 90.7300, down sharply from 90.4150 Friday.

In the secondary market, deals aggregating to INR 119.39 billion were recorded on the National Stock Exchange and BSE combined, significantly lower than INR 84.83 billion Friday. Paper issued by Small Industries Development Bank of India, National Bank for Agriculture and Rural Development, Bajaj Housing Finance, Keertana Finserv, Navi Finserv, UGRO Capital, Muthoottu Mini Financiers, Shriram Finance, The Andhra Pradesh Mineral Development Corp., Indel Money, Kerala Infrastructure Investment Fund Board, and The Andhra Pradesh Mineral Development Corp., were traded the most on the bourses.

"Unless we have any further cues about (the) India-US trade deal or (India's) inclusion in (the) Bloomberg Index, yields would remain flattish," the dealer said. Both India's inclusion in the Bloomberg Index and the India-US trade deal would support prices, weighing on yields.

In the primary market, companies issued bonds worth over INR 56.15 billion, down from INR 89.10 billion Friday. Tuesday, issuances aggregating to INR 32.65 billion are scheduled. Tata Chemicals, Toyota Financial Services, Spandana Sphoorty Financial, and DLF Cyber City Developers will raise funds Tuesday.

Monday, Indian Railway Finance Corp. withdrew its INR 50-billion, 10-year zero-coupon bonds as investors bid for a higher coupon, market sources said. An official from the state-owned company said it was not "comfortable" at the higher level.

Commenting on frequent withdrawals by state-owned financiers, another dealer at the same major state-owned bank said: "Issuers have multiple options to borrow. They can borrow via bank loans, which are cheaper than current yields in market. Such PSUs (such as Indian Railway Finance Corp.) expect rates to be in line with their credit quality and financials. But investors do not see further rate cut in February and some expect rate-hike cycle to start (after a while)."

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds aggregating to INR 114.64 million were traded, according to data on the RBI's Negotiated Dealing System-Order Matching system Monday.

* INR 74.00 million of Rajasthan's 8.19%, 2026 bond was dealt at 7.2784%

* INR 40.64 million of Haryana's 8.21%, 2026 bond was dealt at 6.7111%

BENCHMARK LEVELS FOR CORPORATE BONDS

End

Edited by Rajeev Pai

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