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Informist, Friday, Feb. 13, 2026

By Vaishali Tyagi

NEW DELHI – Yields on corporate bonds fell further across tenures in the secondary market Friday on continuous buying by traders due to comfortable liquidity in the banking system, dealers said. "Insurance companies and pension funds were big buyers today (Friday), building their portfolios with corporate bonds as they have cash with them and have to meet the requirement of investing in NCDs (corporate bonds) before this fiscal (2025-26 (Apr-Mar)) ends," a dealer at a brokerage said.

Investors are showing keen interest due to ample liquidity in the system, dealers said. According to the latest data, the net liquidity absorbed from the banking system by the RBI--a proxy for the liquidity surplus--rose to INR 3.03 trillion Thursday from INR 2.86 trillion Wednesday. Banks' parking in the Standing Deposit Facility rose to INR 4.40 trillion Thursday.

Dealers also said corporate bond yields fell earlier in the day, tracking a fall in government bond yields. Government bond yields fell in early trade after the government switched gilts worth INR 755.04 billion with the RBI, trimming the government's gross borrowing target for 2026-27 (Apr-Mar) from INR 17.20 trillion to INR 16.44 trillion. 

In the secondary market, dealers said activity was concentrated in shorter-tenure bonds with maturities up to 2028. Pension funds, insurance companies, and mutual funds were seen actively buying. While some market participants said banks and corporates were on both the buying and selling sides in the secondary market. The overall volume in the secondary market aggregated INR 97.61 billion on the National Stock Exchange and BSE combined, up from INR 87.07 billion Thursday.

Bonds issued by Punjab National Bank, Indian Renewable Energy Development Agency, State Bank of India, National Highways Authority of India, Indian Overseas Bank, Kerala Infrastructure Investment Fund Board, The Andhra Pradesh Mineral Development Corp., Telangana State Industrial Infrastructure Corp., HDFC Bank, Telangana State Industrial Infrastructure Corp., Mahindra & Mahindra Financial Services, and Piramal Capital & Housing Finance were traded the most.

Activity in the primary market fell significantly ahead of the weekend, with issuances worth only INR 5.90 billion scheduled for Friday, down from INR 50 billion Thursday. Dealers said bond issuances are expected to pick up going forward. Two bond issuances totalling over INR 75 billion are scheduled for Monday. National Bank for Agriculture and Rural Development plans to raise up to INR 70 billion through bonds maturing on Mar. 16, 2029, while Standard Chartered Capital plans to raise INR 5.1 billion by issuing bonds maturing on Apr. 30, 2027, on Monday.

On Thursday, Informist exclusively reported, quoting a senior official at the development financial institution, that NABARD planned to raise up to INR 70 billion through three-year bonds next week. The coupon on the NABARD bond is expected to be below 7.05% due to good participation from mutual funds and pension funds, a dealer at a state-owned company said.

Market participants said activity is expected to remain strong, with several primary bond issuances coming to the market, as this is the last quarter of the financial year.

UDAY BONDS

In the secondary market, 10 Ujwal DISCOM Assurance Yojana bonds worth INR 118.18 million were traded Friday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

* INR 31.78 million of Haryana's 8.21%, 2026 bond was dealt at 5.5268%

* INR 30.00 million of Uttar Pradesh's 8.63%, 2029 bond was dealt at 6.8076%

* INR 17.00 million of Rajasthan's 8.39%, 2026 bond was dealt at 5.2863%

* INR 13.00 million of Telangana's 7.96%, 2032 bond was dealt at 7.2347%

* INR 7.40 million of Rajasthan's 8.19%, 2026 bond was dealt at 5.8577%

* INR 7.00 million of Rajasthan's 8.21%, 2026 bond was dealt at 6.3536%

* INR 7.00 million of Tamil Nadu's 7.92%, 2032 bond was dealt at 7.3400%

* INR 2.50 million of Telangana's 7.81%, 2027 bond was dealt at 6.3261%

* INR 1.50 million of Uttar Pradesh's 8.21%, 2026 bond was dealt at 6.2921%

* INR 1.00 million of Punjab's 8.22%, 2026 bond was dealt at 6.3455%

BENCHMARK LEVELS FOR CORPORATE BONDS

End

With inputs from Aaryan Khanna

Edited by Saji George Titus and Rajeev Pai

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