India Corporate Bonds
Yields rise on high crude prices, weak sentiment
This story was originally published at 20:24 IST on 27 April 2026
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By Nandini Sinha
MUMBAI – Yields on corporate bonds continued to rise amid weak market sentiment as Brent crude oil prices surged to $107 per barrel Monday, dealers said. Papers maturing in up to three years were traded the most, dealers said. Mutual funds sold corporate bonds primarily on redemption pressures, they said, adding that a few mutual funds and banks also bought bonds.
In the secondary market, yields on three-year bonds of the National Bank for Agriculture and Rural Development rose to 7.50-7.55% Monday, from 7.47-7.49% Friday, dealers said. Yields on the five-year bonds of NABARD rose 3 basis points to 7.63-7.68% Monday from 7.60-7.65% Friday. Yields on the 10-year bonds of NABARD also rose 3 bps to 7.68-7.72%, from 7.65-7.68% Friday.
Deals aggregating INR 85.79 billion were recorded in the secondary market on the National Stock Exchange and BSE combined Monday, up from INR 74.84 billion Friday. Papers issued by Indiabulls Housing Finance, Akara Capital Advisors, Earlysalary Services, Telangana State Industrial Infrastructure Corp., and Piramal Capital and Housing Finance were the most actively traded.
Bond issuances in the primary market rose marginally to INR 26.25 billion Monday from INR 25.60 billion Friday. A number of bond issuances have been lined up for Tuesday, including one by Small Industries Development Bank of India. SIDBI plans to raise up to INR 60 billion through bonds maturing in three years and three months, while NIIF Infrastructure Finance plans to raise up to INR 10 billion. Muthoot Microfin and Annapurna Finance also plan to raise funds on Tuesday. The cut-off for NIIF Infrastructure Finance's 5-year bonds is expected to be 7.80-7.90%, a dealer at a private-sector bank said.
With an auction of state government bonds scheduled for Tuesday, dealers do not expect a sell-off in the corporate bond market. "Demand (for corporate bonds) is seen from pension funds and insurance companies in the 5–20 year segment. The yields (on corporate bonds) won't rise much," the dealer from the private sector bank said.
UDAY BONDS
In the secondary market, one Ujwal DISCOM Assurance Yojana bond worth INR 2.5 million was traded Monday, according to data on the RBI's Negotiated Dealing System-Order Matching System.
* INR 2.5 million of Uttar Pradesh's 8.75%, 2030 bond was dealt at 7.8907%
BENCHMARK LEVELS FOR CORPORATE BONDS:
Tenure | Monday | Friday |
Three-year | 7.50-7.55% | 7.47-7.49% |
Five-year | 7.63-7.68% | 7.60-7.65% |
10-year | 7.68-7.72% | 7.65-7.68% |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
With inputs from Meera Nair
Edited by Saji George Titus
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