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Informist, Friday, Jan. 9, 2026

By Vaishali Tyagi

MUMBAI – Yields on corporate bonds ended steady in the secondary market across tenures on Friday due to muted market participation, dealers said. The market was sluggish compared to previous sessions due to lack of global and domestic cues, they said. "There was less participation today (Friday) because there are no cues in market, people are purchasing and selling bonds based on their requirement," a dealer at a brokerage firm said. "Some papers have heavy requirement, but it was limited to three to five year maturity."

Dealers attribute the steady yields to tight liquidity, limiting buying interest. Mutual funds and banks are selling to meet funding needs, as inflows were lower than expected at the start of January, dealers said.

In the secondary market, mutual funds and banks were seen selling while some insurance companies were active on both the buying and selling sides, dealers said. Most corporates remained absent from the market, dealers said. Volume in the secondary market was at INR 72.83 billion Friday, significantly lower from Thursday's total of INR 107.75 billion on the National Stock Exchange and BSE combined. 

Dealers said as and when liquidity in the banking system will improve, mutual funds and other investors will deploy funds and are likely to show interest in investment in the near future. They said portfolio churning will also pick up, which is likely to push volume even higher.

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

Activity picked up in primary market Friday. Issuances totalling INR 23.78 billion were scheduled for Friday, up from INR 1.0 billion on Thursday. On Monday, activity is expected to rise further and issuances aggregating to INR 80.85 billion are scheduled. Large issuers include Small Industries Development Bank of India, which planned to raise INR 60 billion through Feb. 29, 2029 bonds on Monday. Kotak Mahindra Prime plans to raise up to INR 6 billion through five-year bonds and PNB Housing Finance aims to raise up to INR 4 billion through five-year bonds. Incred Financial Services, Kosamattam Finance, and Muthoottu Mini Financiers will also tap the debt market to raise funds.

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds worth INR 14.00 million were traded Friday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

* INR 12.00 million of Andhra Pradesh's 7.35%, 2030 bond was dealt at a weighted average yield of 6.9795%

* INR 2.00 million of Tamil Nadu's 8.04%, 2029 bond was dealt at a weighted average yield of 6.6891%

BENCHMARK LEVELS FOR CORPORATE BONDS

End

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

Edited by Deepshikha Bhardwaj

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