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Informist, Wednesday, Apr. 22, 2026

By Nandini Sinha

MUMBAI – Yields on corporate bonds were rangebound Wednesday amid increased volume on selling by mutual funds, dealers said. Rates on corporate bonds with maturities of up to five years rose a few basis points from Tuesday. A sharp rise, however, was prevented by ample liquidity in the banking system, dealers said. 

The rates on corporate bonds were largely shielded from the rise in oil prices Wednesday, dealers said. The Brent crude oil futures contract hit the $100-per-barrel mark intraday. "Most of the trading in corporate bonds happens during the first half of the day. There's not much trade in the second half", a dealer from a public sector bank said as he explained why the yields on corporate bonds did not rise sharply even as the yields on government bonds rose. The yield on the 10-year benchmark 6.48%, 2035 bond ended at 6.92% Wednesday, up from 6.89% Tuesday. 

In the secondary market, yields on three-year bonds of the National Bank for Agriculture and Rural Development were 7.35-7.40% Wednesday, a tad up from 7.33-7.38% Tuesday, dealers said. Yields on the five-year and 10-year bonds of NABARD were steady at 7.50-7.55% and 7.62-7.67%, respectively.

At 1500 IST, deals aggregating INR 54.63 billion were recorded in the secondary market on the National Stock Exchange and BSE combined Wednesday, up from 40.72 billion Tuesday.
 

Papers issued by NABARD, Kosamattam Finance Ltd., The Andhra Pradesh Mineral Development Corp. Ltd., Hinduja Leyland Finance Ltd., Telangana State Industrial Infrastructure Corp. Ltd., and Hyderabad Metropolitan Development Authority were traded the most. Thursday, Poonawalla Fincorp Ltd. plans to raise up to INR 2.5 billion, Namra Finance Ltd. plans to raise up to INR 1.5 billion, and Kotak Mahindra Prime Ltd. plans to raise INR 7 billion through issuances in the primary market. 

Banks and pension funds mostly bought corporate bonds, while mutual funds sold them. Export Import Bank of India and the Small Industries Development Bank of India could follow with bond issuances in the primary market after the NABARD's reissue of the July 2029 bonds Tuesday, the dealer at the state-owned bank said. "There wasn't much borrowing in March as the levels were very high...around 7.80-7.90%. So those who didn't borrow then will borrow now in this financial year (2026-27)," the dealer said. 

Market participants don't see record outflows by foreign portfolio investors having a major impact on the corporate bond market. Foreign portfolio investors have net sold Indian equities worth INR 1.68 trillion so far in 2026, according to a Business Standard report. 

"The major outflows have been from equities, not from NCDs (non-convertible debentures)," the dealer quoted in the first instance said. "The Indian market has matured. The outflows (by FPIs) are offset by the DIIs (domestic institutional investors). Foreign portfolio investors sell, then mutual funds, pension funds, insurance companies buy (corporate bonds)," a dealer from a private sector bank said. 

UDAY BONDS

No Ujwal DISCOM Assurance Yojana bond was traded Wednesday, according to data on the RBI's Negotiated Dealing System-Order Matching system.

BENCHMARK LEVELS FOR CORPORATE BONDS:

End
 

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

With inputs from Meera Nair

Edited by Deepshikha Bhardwaj

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