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Informist, Tuesday, Dec. 30, 2025

 

By Vaishali Tyagi

 

MUMBAI – Yields on corporate bonds remained in a narrow range across tenures Tuesday as market witnessed a lacklustre day and participants refrained from making big bets ahead of the year-end, dealers said. The holiday season has led to a slowdown in market activity, with many investors and bankers taking an extended break, they said.

 

"Right now, activity in the market is very dull," a fund manager at a mutual fund house said. "Since New Year is approaching, hence, most people are on leaves, in fact some people did not return since Christmas holiday...everyone has taken long leaves. Maybe we'll see some aggressive activity in the market after entering new year."

 

On Tuesday, investor participation also remained low with foreign institutional investors and bankers on holiday ahead of the New Year, resulting in subdued trade volumes. "Mutual funds and banks were there in primary market as some non-banking financial companies issued bonds and they invested in fresh supply but not much activity was noted from them (MFs) in secondary market today (Tuesday)," a dealer at a brokerage firm said.

 

Further, dealers said that overall activity in the primary and secondary markets was subdued as investors sentiment was down due to liquidity crunch in the banking system. Other major players, including insurance companies and pension funds, were largely inactive, resulting in muted activity. Deals aggregating over INR 140.00 billion were recorded Tuesday on the National Stock Exchange and BSE combined, significantly up from INR 71.88 billion reported on Monday.

 

Papers issued by State Bank of India, Hero Fincorp., Kerala Infrastructure Investment Fund Board, Muthoot Fincorp, Andhra Pradesh State Beverages Corp., Telangana State Industrial Infrastructure Corp., Hinduja Leyland Finance, IIFL Samasta Finance, and Navi Finserve were traded the most on the bourses. 

 

In the primary market, companies issued bonds worth INR 19.00 billion Tuesday, nearly a fifth of the 100.25 billion on Monday. Issuances totalling INR 14.05 billion are scheduled for Wednesday. Ascendas IT Park Pune is the largest issuer on Wednesday, planning to raise INR 9.15 billion through bonds maturing in three years. Urjah Metallics will also tap the market to raise INR 3.50 billion through bonds. Vedika Credit Capital will also raise funds on Wednesday. Dealers expect the primary market issuances to rise once liquidity returns to the system. The RBI's net liquidity injected into the banking system--a proxy for the liquidity deficit--was INR 715.84 billion Monday, higher than INR 623.02 billion Sunday.

 

UDAY BONDS

In the secondary market, three Ujwal DISCOM Assurance Yojana bonds worth INR 161.30 million were traded Tuesday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

 

* INR 100.00 million of Uttar Pradesh's 8.44%, 2029 bond was dealt at a weighted average yield of 6.9662%

* INR 50.00 million of Uttar Pradesh's 8.63%, 2029 bond was dealt at a weighted average yield of 6.9955%

* INR 11.30 million of Telangana's 8.08%, 2029 bond was dealt at a weighted average yield of 6.9376%

 

BENCHMARK LEVELS FOR CORPORATE BONDS

Tenure	Tuesday	Monday
Three-year	6.91-6.94%	6.91-6.93%
Five-year	7.03-7.06%	7.03-7.05%
10-year	7.24-7.27%	7.25-7.28%

 

End

 

Edited by Akul Nishant Akhoury

 

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