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Informist, Thursday, Jan. 8, 2026

 

By Vaishali Tyagi

 

MUMBAI – Yields on corporate bonds ended in a narrow range Thursday after rising for three straight days, as selling by mutual funds was offset by buying interest, dealers said. "Mutual funds were the main sellers today, but there was some buying also which kept levels steady," a dealer at a brokerage firm said. "Market is selling a lot in 10-year segment as no one wants to carry the position in uncertain environment, therefore people are switching to shorter-tenure bonds. In fact, there was selling in those segments also."

 

Corporate bond yields rose slightly during the day, tracking an increase in government bond yields as traders placed short bets on gilts to make room for the INR 290 billion of fresh supply at the weekly gilt auction Friday, dealers said. However, after some buying, corporate bond yields ended steady. 

 

In the secondary market, mutual funds and banks were actively selling while some insurance companies and other corporates were active on both the buying and selling sides, dealers said. Most pension funds were seen inactive in the market, dealers said. Volume in the secondary market rose to INR 45.24 billion Thursday, marginally higher than Wednesday's total of INR 42.58 billion on the National Stock Exchange and BSE combined. 

 

Dealers expect trading volume in the secondary market to pick up as companies have entered Jan-Mar, the last quarter of 2025-26 (Apr-Mar) to meet their annual target. Mutual funds are sitting on inflows and may deploy funds in the secondary market, given the current lack of primary market supply. "January is going to be a busy month for corporate bonds as companies will rush to meet their annual fundraising targets," another dealer at a brokerage firm said. 

 

Bonds issued by Muthoot Finance, UGRO Capital, Profectus Capital, HDFC Bank, IIFL Samasta Finance, National Bank for Agriculture and Rural Development, Small Industries Development Bank of India, Chaitanya India Fin Credit, Keertana Finserv, and Andhra Pradesh State Beverages Corp. were traded the most on exchanges.

 

Lacklustre activity continued in the primary market Thursday. Issuances totalling INR 4.06 billion were scheduled for Thursday, up from INR 1 billion on Wednesday. On Friday, activity is expected to rise and issuances aggregating to INR 23.78 billion are scheduled. Bajaj Housing Finance plans to raise up to INR 15 billion by reissuing bonds maturing on Oct. 16, 2028. Aditya Birla Capital Ltd. has invited bids to raise up to INR 7.5 billion through the reissuance of two bonds. Other fundraisers include Purple Finance and Emerald Haven Properties. 

 

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds worth INR 152.50 million were traded Thursday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

 

* INR 150 million of Uttar Pradesh's 8.71%, 2028 bond was dealt at a weighted average yield of 6.5%

* INR 2.50 million of Telangana's 7.81%, 2027 bond was dealt at a weighted average yield of 6.1859%

 

BENCHMARK LEVELS FOR CORPORATE BONDS

Tenure	Thursday	Wednesday
Three-year	6.98-7.01%	6.98-7.00%
Five-year	7.08-7.11%	7.08-7.10%
10-year	7.32-7.35%	7.30-7.35%

 

End

 

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

 

Edited by Tanima Banerjee

 

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