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Informist, Friday, Jan. 23, 2026

By Vaishali Tyagi

MUMBAI – Yields on corporate bonds in the secondary market ended in a narrow range Friday, after falling in the previous session, as mixed activity from mutual funds, insurance companies and several banks kept trading subdued, dealers said. Market participants shifted their focus to the primary market, which saw a sharp uptick Friday with a major issuance from Adani Power and several bond issuances from non-banking financial companies, dealers added. Adani Power raised INR 75 billion through the issuance of four bonds which were fully subscribed.

Secondary market trading stayed muted, with activity limited to portfolio churning and a few traders sold a few long-term bonds and bought short-term bonds ahead of the market holiday on Monday, which kept yields steady, they said. India's financial markets will be closed on Monday for Republic Day. 

Earlier in the day, buying demand from several insurance companies and mutual funds pushed yields slightly lower. However, later in the day, selling emerged from a handful of mutual funds and banks with higher quantum which pulled back yields to the earlier levels. Hence throughout day, levels remained in a limited range. "Insurances (insurance companies) along with MFs were very actively buying shorter-tenure bonds, which pushed yields marginally lower in short-end...while some mutual funds and banks were selling too across tenures," a dealer at a brokerage firm said. 

Dealers said the secondary market was largely positive on Friday, though volume slipped on low corporate activity and modest participation from pension funds meeting their needs. "Trading volumes were lower today, even as a few good deals were executed, with insurance companies and mutual funds doing a good amount of buying and selling," the dealer quoted above said. "Volume in the secondary market also fell today (Friday) as the long weekend as Monday is Republic Day holiday which led some traders to hold back, which was reflected in the lower turnover."

In the secondary market, participants from different segments were seen trading, while most insurance companies and mutual funds were buying papers in shorter tenure. A few other mutual funds and banks were seen selling bonds across tenures. Pension funds and corporates' participation was limited, dealers said. On Friday, volume in the secondary market was at INR 84.76 billion on the National Stock Exchange and BSE combined, significantly lower from INR 142.28 billion Thursday.  

Bonds issued by Telangana State Industrial Infrastructure Corp., Tata Motors Finance, Canara Bank, Torrent Pharmaceuticals, Andhra Pradesh State Beverages Corp., Apex Homes Pvt., National Bank For Agriculture And Rural Development, Ambium Finserve, Tata Capital Housing Finance, and Moneyboxx Finance were traded the most on exchanges Friday.

Activity in the primary market rose significantly Friday with volume surging to nearly INR 140 billion from INR 105 billion Thursday. Dealers expect bond issuances to accelerate in the coming weeks. "We are expecting some banks to tap the bond market as this is the last quarter to raise funds," a dealer at another brokerage firm said.

On Tuesday, bond issuances aggregating to nearly INR 21 billion are in line to raise funds from debt market. Cholamandalam Investment and Finance Ltd. plans to raise up to INR 20 billion by issuing bonds maturing on Jun. 28, 2028 and has invited bids for the same Tuesday. Other issuers, including Regency Fincorp, Manba Finance, Kanakadurga Finance, Light Microfinance, and Midland Microfin have invited bids to raise funds from the corporate debt market. 

UDAY BONDS

In the secondary market, one Ujwal DISCOM Assurance Yojana bond worth INR 1.10 million was traded Friday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

* INR 1.10 million of Tamil Nadu's 7.75%, 2032 bond was dealt at 7.3996%.

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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