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Informist, Wednesday, Mar. 25, 2026

By Vaishali Tyagi

NEW DELHI – Corporate bonds yields ended steady in the secondary market Wednesday as trading activity was mixed with mutual funds rebalancing portfolios and other participants carrying out need-based trade on caution ahead of the market holiday Thursday for Ram Navami, dealers said. Dealers said traders have shifted focus to the primary market limiting yield movement in the secondary market, dealers said.

"They (traders) are cautious these days... market is very unpredictable and most importantly who will take risk amid such uncertain environment when gilts (government bond) yields can move any side," a dealer at a broking firm said. "We saw some traders doing need-based activity... mostly rebalancing their portfolios as just 2-3 days are left for (the financial) year 2025-26 (Apr-Mar) end."

Traders remained cautious and avoided buying aggressively because of the continued uncertainty stemming from the military conflict in West Asia. "(Market) activity was subdued and volume remained low with selling bias, as everybody is struggling for clarity," the dealer quoted earlier said. "Investors are preferring to stay on the sidelines, even though people are getting premium returns as nobody wants to lock in their capital when there is high uncertainity."

In early trade, yields were broadly steady but rose by 1-2 basis points because of continued selling by mutual funds facing redemption pressure. Other investors, like insurance companies and banks, also sold bonds to manage portfolios ahead of the financial year-end, adding to the pressure.

Indicative yields on three-year bonds of National Bank for Agriculture and Rural Development were broadly unchanged at 7.55-7.61% compared with 7.56-7.62% Tuesday while those on five-year NABARD bonds were at 7.56-7.63%, against 7.58-7.65%. The yields on 10-year bonds stood at 7.63-7.71%, down marginally from 7.64-7.70% Tuesday.

In the secondary market, deals aggregating to INR 108.54 billion were recorded on the National Stock Exchange and BSE combined, against INR 153.95 billion Tuesday. 

Paper issued by HDB Financial Services, HDFC Bank, Mahindra & Mahindra Financial Services, Bajaj Finance, UGRO Capital, Samunnati Finance, Navi Finserv, Keertana Finserv, Apex Homes, Finkurve Financial Services, and MAS Financial Services were traded the most in the secondary market.

In the primary market, issuances fell to INR 14.60 billion from INR 19.20 billion Tuesday. Non-banking finance companies and one infrastructure investment trust tapped the market Wednesday. Friday, over INR 63 billion of bonds will hit the market. Aditya Birla Capital plans to raise up to INR 15 billion through bonds maturing in five years, two months on May 13, 2031. Lodha Developers will raise INR 5 billion through 10-year bonds. Muthoot Fincorp has invited bids to raise up to INR 7 billion through two bonds of different maturities. Other issuers include Sammaan Capital and SMFG India Home Finance Co.

BENCHMARK LEVELS FOR CORPORATE BONDS:

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Edited by Rajeev Pai

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