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Informist, Tuesday, Mar. 10, 2026

By Vaishali Tyagi

NEW DELHI – Yields on corporate bonds cooled marginally as risk sentiment improved after a fall in crude oil prices, dealers said. However, a few traders remained cautious due to the ongoing West Asia conflict, which limited the fall in yields, they added. On Monday, US President Donald Trump said that the US military objectives in Iran were almost complete, just days after administration officials had pegged the timeline at several weeks.

Indicative yields on three-year National Bank for Agriculture and Rural Development fell 2-3 basis to 7.23-7.26% Tuesday from 7.25-7.29% Monday, while those on five-year NABARD bonds fell to 7.29-7.32% from 7.32-7.35%. The yields on 10-year bonds were at 7.39-7.42% from 7.42-7.45%.

Corporate bond yields also dropped, mirroring the fall in government bond yields, as traders took advantage of improved sentiment. Yields fell as crude oil prices and US Treasury yields eased, and banks had ample liquidity from the RBI's gilt purchases through auction, dealers said. 

The market saw a positive trend Tuesday. Mutual funds were active buyers, focusing on 2028-29 papers, contributing to the soft and range-bound session, dealers said. "Market was positive today, yields came down as oil prices dropped," a dealer at a brokerage firm said. "Most action was seen in the 2028-29 papers. Mutual funds were the dominant players today (Tuesday), mostly on the buying side. Overall, it was a soft, range-bound session with a mild bullish bias."

In the secondary market, deals aggregating to INR 112.66 billion were recorded on the National Stock Exchange and BSE combined Tuesday, up slightly from INR 104.05 billion Monday. Mutual funds and banks were seen actively buying shorter-tenure bonds. Companies were also buying bonds across tenures. Pension funds were absent from the market, dealers said. 

Papers issued by Tata Capital Housing Finance, Tata Capital Financial Services, Power Finance Corp., Navi Finserv, Small Industries Development Bank of India, Sammaan Capital, UGRO Capital, Auxilo Finserve, IIFL Home Finance, The Andhra Pradesh Mineral Development Corp., Satin Finserv, and National Bank for Agriculture and Rural Development were traded the most.

In the primary market, bond issuances fell to INR 7.2 billion Tuesday from INR 41.20  billion Monday. Merchant bankers said that the market saw a rally across asset classes, pushing issuers to assess the improving situation and announce their fundraising plans. NABARD and REC have invited bids on Thursday to raise capital, joining the list of entities looking to tap the market. "There was good rally across tenures and assets and we may see more announcements of fundraising from companies," a fund manager at a mutual fund house said. "A few state-owned entities have already announced their fundraising plans as yields fell," a dealer said. 

On Wednesday, over INR 77 billion worth of bonds will hit the market. Bharti Telecom, the holding company of telecommunications major Bharti Airtel Ltd., plans to raise INR 45 billion through the issuance of two bonds of different maturities. NIIF Infrastructure Finance has also invited bids to raise up to INR 10 billion through the issuance of two bonds of different maturities. Citicorp Finance will also tap the market to borrow up to INR 10 billion by issuing bonds maturing on Jun. 12, 2028. Other issuers, including HDB Financial Services, Tapir Constructions, Oxyzo Financial Services and Nomura Capital (India) will also tap the market to raise funds. 

Dealers said activity is likely to stay mixed in the near term, mostly on the lower side, despite some companies announcing plans, as market participants wait for more clarity on when the conflict between Iran and the US-Israel combine will come to an end.

UDAY BONDS

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In the secondary market, four Ujwal DISCOM Assurance Yojana bonds aggregating to INR 551.60 million were traded Tuesday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

* INR 500.00 million of Uttar Pradesh's 8.66%, 2027 bond was dealt at 6.0399%

* INR 26.60 million of Haryana's 8.21%, 2026 bond was dealt at 5.9994%

* INR 17.00 million of Rajasthan's 8.39%, 2026 bond was dealt at 5.9961%

* INR 8.00 million of Chhattisgarh's 8.27%, 2026 bond was dealt at 9.0008%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

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

Edited by Avishek Dutta

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