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Informist, Monday, May 11, 2026

 

MUMBAI – Corporate bond issuances rose multifold Monday while yields hardened across segments as market sentiment was weak after crude oil prices and yields on Indian government bonds rose, dealers said. Mutual funds were the most active buyers of corporate bonds, while banks and pension funds were major sellers. Papers maturing in up to three years were the most actively traded.

 

Bonds worth INR 136.05 billion were issued Monday, up sharply from INR 10.55 billion of bonds issued Friday. Dealers expect bond issuances to rise despite the weak investor appetite. "Today, a one-year AAA-rated bond was traded at 7.65-7.70% levels. This shows companies are in dire need of funds. CP issuances also impacted the rates on corporate bonds," a dealer at a private sector bank said. "(I) expect FMCG (fast moving consumer goods) and other consumer companies to issue bonds. If that happens, investors would want the premium to rise," the dealer said.

 

In the secondary market, three-year bonds of the National Bank for Agriculture and Rural Development ended Monday at 7.55-7.65%, up from 7.45-7.57% Friday. The five-year NABARD bonds ended at 7.65-7.70%, up 5 basis points from 7.60-7.65% Friday. The 10-year NABARD bonds were not traded Monday. The indicative yield on the 10-year bonds was 7.75-7.85%, up 15 bps from 7.60-7.70% Friday, dealers said.

 

In the secondary market, deals aggregating INR 38.03 billion were recorded at 1500 IST on the National Stock Exchange and BSE combined, up from INR 35.66 billion at the same time Friday. Among the actively traded bonds, INR 4.45 billion worth of NABARD papers were traded and INR 3.03 billion worth of Apex Homes Pvt. Ltd.'s bonds were traded. Papers issued by HDB Financial Services Ltd., IIFL Finance Ltd., and Sammaan Capital Ltd. were also actively traded.

 

Market participants are unsure of how to read Prime Minister Narendra Modi's statements Sunday, asking the public to cut down on the use of petrol and diesel. "Can't say if it was a precautionary statement or whether it was a hint that the US-Iran war could escalate," a dealer at a public sector bank said. "PM said you should control whatever you can control." 

 

Dealers expect yields on the corporate bonds to be range-bound Tuesday. "It will mostly depend on the G-sec (government securities)...unless there is a geopolitical development (that could lead to a rise or fall in the yields), the yields are expected to be range bound," the dealer from the state-owned bank said.

 

On Tuesday, Kotak Mahindra Prime Ltd. plans to raise INR 5 billion through bonds maturing in April 2031, dealers said. Navi Finserv Ltd. plans to raise INR 1 billion, Nuvama Wealth And Investment Ltd. plans to raise up to INR 2 billion, and 360 One Alternates Asset Management Ltd. plans to raise up to INR 2.5 billion. IKF Finance Ltd. plans to raise up to INR 1 billion, RDC Concrete India Ltd. plans to raise up to INR 750 million, while Conmin Projects India Pvt. Ltd. plans to raise INR 130 million through the reissue of the September 2030 bond.  

 

UDAY BONDS

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

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	Monday	Friday
Three-year	7.55-7.65%	7.45-7.57%
Five-year	7.65-7.70%	7.60-7.65%
10-year	7.75-7.85%	7.60-7.70%

 

End

 

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

 

Edited by Avishek Dutta

 

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