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Informist, Tuesday, Feb. 10, 2026

By Vaishali Tyagi

NEW DELHI – Yields on corporate bonds were unchanged in the secondary market Tuesday, with traders focussing on need-based trades and because of limited participation, dealers said. Many participants also shifted their attention to the primary market, awaiting issuances from key state-owned entities, dealers said.

Merchant bankers believe activity in the primary market will continue to rise, driven by slight fall in yields and increased investor appetite amid good liquidity in the banking system. "There is good liquidity in the system now and yields are more stable on lower side, and traders are participating (in secondary market) depending on their requirement but we expect good activity in primary market this week as a lot of big issuances are coming," a dealer at a brokerage firm said.

Several companies have announced plans to raise funds through bond issuances this week. On Wednesday, issuances aggregating INR 171.85 billion are scheduled. Small Industries Development Bank of India will raise up to INR 80 billion through bonds maturing on Apr. 9, 2029, with the coupon rate expected to be in the range of 7.20-7.25%. Power Finance Corp. Ltd. plans to raise up to INR 40 billion through two bonds of different maturities, while Housing and Urban Development Corp. Ltd. plans to raise up to INR 15 billion by issuing perpetual bonds. National Bank for Financing Infrastructure and Development plans to raise up to INR 40 billion through 10-year bonds maturing on Feb. 12, 2036. Apart from these key issuances, several non-banking financial companies are also in queue to borrow capital from the corporate debt market. In the primary market, issuances aggregating to INR 6.50 billion were scheduled Tuesday, significantly lower than INR 36.40 billion Monday.

In the secondary market, dealers said activity is concentrated in the shorter end, with 2026 papers seeing more volumes than other tenures, driven by insurance companies and corporate. The current liquidity surplus, fuelled by the Reserve Bank of India's open market operations and variable rate repo operations, is expected to be short-lived, leaving market participants uncertain about long-term liquidity. "People (traders) are focusing on the shorter end, particularly 2026-2028 maturities, as these tenures are more liquid than others," a dealer at another brokerage firm said.

Pension funds, banks, and mutual funds were seen actively buying and selling both. Tuesday, volume in the secondary market on the National Stock Exchange and BSE combined was INR 90.34 billion, marginally lower than INR 80.09 billion Monday.

Bonds issued by HDB Financial Services, Union Bank of India, Muthoot Fincorp, Tata Capital Financial Services, Indian Renewable Energy Development Agency, National Highways Authority of India, Canara Bank, Nabkisan Finance, Kerala Infrastructure Investment Fund Board, and Andhra Pradesh State Beverages Corp. were traded the most.

UDAY BONDS

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

* INR 2.0 million of Tamil Nadu's 8.04%, 2029 bond was dealt at 6.6502%

BENCHMARK LEVELS FOR CORPORATE BONDS

End

Edited by Ashish Shirke

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