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Informist, Friday, Dec. 26, 2025

By Vaishali Tyagi

MUMBAI – Yields on corporate bonds were in a narrow range across tenures in the secondary market Friday due to muted participation ahead of the weekend, dealers said. Investors avoided placing large bets owing to the lack of firm domestic cues, they said. Market participants expect yields to remain range-bound until traders return to the trading desks after the holidays, they said. 

"It's a holiday weekend ahead... market has been super quiet today (Friday)... lack of participants was there due to the long weekend, foreign banks' books are closed," a dealer at a brokerage firm said. "It's like most dealers are on leave. That's why activity has been so low and most of them are waiting for market activity to start properly in the new year." Dealers said trading is expected to be sluggish next week, as most traders are on extended leave for the New Year. 

Further, dealers said that overall activity in the primary and secondary markets was subdued, with only some mutual funds taking positions. Other major players, including banks, insurance companies, and pension funds, were largely inactive, resulting in muted activity. "Even major mutual funds were also on the sidelines and they also avoided big bets due to redemption pressure, leaving them little room to trade actively."

Deals aggregating to INR 70.01 billion were recorded Friday on the National Stock Exchange and BSE combined, sharply down from INR 119.14 billion reported on Wednesday. A few mutual funds and banks were active on both the buying and selling sides across tenures, while a handful of insurance companies and corporates were active on the buying side but in low volumes. Pension funds remained absent from the corporate debt market. 

Papers issued by IIFL Samasta Finance, National Bank for Agriculture and Rural Development, Bajaj Housing Finance, Power Finance Corp., Capri Global Capital, Housing & Urban Development Corp., The Andhra Pradesh Mineral Development Corp., Telangana State Industrial Infrastructure Corp., and Cholamandalam Investment and Finance Company were traded the most on the bourses. 

In the primary market, companies issued bonds worth INR 3.25 billion Friday, nearly a fifth of the 15.75 billion raised on Wednesday. Money markets were closed on Thursday due to Christmas. Issuances totalling INR 100.25 billion are scheduled for Monday.  

NABARD is the largest issuer on Monday, planning to raise INR 70 billion through bonds maturing on Feb. 23, 2029. Another key issuer is Manappuram Finance, which has invited bids to raise INR 10 billion via two-year bonds. IIFL Finance will also tap the market to raise INR 8 billion through three bonds. Urjah Metallics, Shriram Life Insurance Co., Annapurna Finance, CEAT, MAS Financial Services, and Keertana Finserv will also raise funds on Monday. Dealers expect the coupon on the NABARD bond to be in the 6.90-7.00% range Monday. On Nov. 25, NABARD scrapped the bonds after investors demanded a higher coupon.

UDAY BONDS

In the secondary market, four Ujwal DISCOM Assurance Yojana bonds worth INR 55.44 million were traded Friday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

* INR 40.64 million of Haryana's 8.21%, 2026 bond was dealt at a weighted average yield of 5.8208%

* INR 7.00 million of Telangana's 7.96%, 2032 bond was dealt at a weighted average yield of 7.2349%

* INR 5.00 million of Telangana's 7.81%, 2027 bond was dealt at a weighted average yield of 6.4222%

* INR 2.80 million of Tamil Nadu's 7.75%, 2031 bond was dealt at a weighted average yield of 7.2482%

BENCHMARK LEVELS FOR CORPORATE BONDS

End

Edited by Saji George Titus

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