More Stories

Informist, Wednesday, Jan. 14, 2026

By Vaishali Tyagi

NEW DELHI – Yields on corporate bonds in the secondary market ended marginally higher Wednesday as mutual funds faced redemption pressure and sold bonds across tenures in the secondary market, dealers said. Most other participants, including insurance companies, banks and pension funds, also sold bonds due to tight liquidity in the banking system.

"Tight liquidity and redemption pressure are the main cause for selling, which is also pushing yields higher," a dealer at a brokerage firm said. "MFs were selling across tenures but most trading happened in shorter tenure segment. Liquidity needs to remain firmly positive for few more days...till then less comfortable on liquidity front."

Some insurance companies sold aggressively, adding to market pressure and pushing yields up. However, buying from private banks and mutual funds limited the rise in yields, dealers said. Market participants said buying activity is limited, with traders low on cash due to tight liquidity and most mutual funds selling. 

The corporate bonds also rose, tracking a rise in government bond yields as traders continued to sell gilts after Bloomberg Tuesday delayed the inclusion of India's fully accessible route bonds in its flagship Global Aggregate Index, dealers said. "Yields on (corporate) bonds also rose due to rise in g-sec after yesterday's news," a dealer at a brokerage firm said. 

Merchant bankers anticipate a rise in activity pick up once liquidity returns to the banking system, with MFs and investors likely to deploy cash. Portfolio churning is also expected to gain traction, which is expected to boost trading volumes. The net liquidity absorbed from the banking system by the RBI – a proxy for the liquidity surplus – was INR 1.01 trillion Tuesday, the highest since Dec. 15, against INR 164.11 billion Monday.

In the secondary market, mutual funds were seen actively selling bonds across tenures. Pension funds and insurance companies were also seen selling but in low volumes, dealers said. Wednesday, volume in the secondary market was at INR 135.53 billion on the National Stock Exchange and BSE combined, higher than 103.17 billion Tuesday. 

Bonds issued by Muthoot FinCorp., Piramal Capital & Housing Finance, Kerala Infrastructure Investment Fund Board, LIC Housing Finance, Muthoottu Mini Financiers, Vedika Credit Capital, National Bank for Agriculture and Rural Development, Power Finance Corp. were traded the most on exchanges.

Activity in the primary market remained dull Wednesday. Issuances totalling INR 7.24 billion were scheduled, down from Tuesday's INR 9.80 billion. Market participants are looking for more cues to place bets.

UDAY BONDS

In the secondary market, seven Ujwal DISCOM Assurance Yojana bonds worth INR 533.98 million were traded Wednesday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

* INR 451.80 million of Uttar Pradesh's 8.45%, 2027 bond was dealt at 7.1000%

* INR 29.78 million of Haryana's 8.21%, 2026 bond was dealt at 7.3943% 

* INR 13.00 million of Telangana's 7.96%, 2032 bond was dealt at 7.5991% 

* INR 13.00 million of Rajasthan's 8.39%, 2026 bond was dealt at 7.7343%

* INR 12.00 million of Tamil Nadu's 8.24%, 2028 bond was dealt at 7.0021%

* INR 7.40 million of Rajasthan's 8.19%, 2026 bond was dealt at 7.5674%

* INR 7.00 million of Tamil Nadu's 7.92%, 2032 bond was dealt at 7.6507%

BENCHMARK LEVELS FOR CORPORATE BONDS

End

With inputs from Aaryan Khanna

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.