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Informist, Monday, Jan. 12, 2026

By Vaishali Tyagi

MUMBAI – Yields on corporate bonds ended steady Monday as traders stayed on sidelines due to lack of funds and in absence of significant cues, dealers said. Mutual funds and banks did need-based trades, they said. The net liquidity absorbed from the banking system by the RBI--a proxy for the liquidity surplus--was INR 298.72 billion Sunday, against INR 274.71 billion Saturday. 

"Trades were not significant today (Monday), even though some (traders) tapped the market but quantum was not that big ...so we did not see many participants trading aggressively and even some big mutual funds did not have enough cash to trade papers," a dealer at a mid-sized brokerage said. "Due to tight liqudity in the system banks were also not placing today (Monday) that aggressive bets."

Apart from tight liquidity, there are no major domestic or global triggers in sight, traders are just trading based on their requirement as there are no clear direction to bet on. "During market hours, traders were waiting for inflation data to have some guide," a fund manager at a mutual fund house said. Also, volume in secondary market remained dull as many traders remained focus on primary market large issuers include Small Industries Development Bank of India tapped the market to raise INR 60 billion through Feb. 29, 2029 bonds. SIDBI's INR 60 billion bond was fully subscribed at 7.04%.

In the secondary market, mutual funds were seen actively selling bonds across tenures. Banks and insurance companies were seen buying and selling while some very few pensions funds were active on selling sides, dealers said. Most corporates remained absent from the market, dealers said. Volume in the secondary market was at INR 54.43 billion Monday, significantly lower from 72.83 billion Friday on the National Stock Exchange and BSE combined. 

Dealers mentioned that once liquidity eases, mutual funds and other investors will start deploying cash, and investment activity will pick up. They are also expecting active portfolio churning to gain momentum when traders have cash, which will further boost trading volumes.

Bonds issued by Muthoot Finance, IIFL Finance, Keertana Finserv, Navi Finserv, 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, and Andhra Pradesh State Beverages Corp. were traded the most on exchanges.

Activity picked up in primary market Monday. Issuances totalling to INR 80.85 billion are scheduled, up from INR 23.05 billion on Friday. On Tuesday, issuances aggregating to nearly INR 9.8 billion are scheduled. TVS Infrastructure Trust, Hinduja Leyland Finance and Keertana Finserv will tap the debt market to raise funds.

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds worth INR 14 million were traded Monday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

* INR 12 million of Andhra Pradesh's 7.35%, 2030 bond was dealt at a weighted average yield of 6.9651%

* INR 2 million of Tamil Nadu's 8.04%, 2029 bond was dealt at a weighted average yield of 6.6847%

BENCHMARK LEVELS FOR CORPORATE BONDS

End

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

Edited by Akul Nishant Akhoury and Rajeev Pai

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