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Informist, Wednesday, Jul. 22, 2026

By Nandini Sinha

MUMBAI – Yields on corporate bonds ended higher Wednesday, tracking the rise in yields on Indian government bonds and crude oil price, dealers said. Yields also inched up on selling pressure from market participants. Bonds maturing in up to two years were traded actively, with few trades seen in the five-year segment. Banks and insurance companies remained active buyers in the corporate bond market while mutual funds were seen selling.

"Crude... went up, G-sec (government securities) went up... so selling sentiment was there," a dealer at a broking firm said. At 1706 IST, Brent crude oil futures for September delivery was at $94.53 a barrel, up sharply from $91.01 Tuesday. The yield on the 10-year benchmark 6.94%, 2036 Indian government bond settled at 6.80% Wednesday, up from 6.79% Tuesday. 

The uncertainty on the geopolitical front has prevented traders from taking long-term positions, a dealer at a private-sector bank said. "All are looking at short-term (bonds) only," the dealer said. "There is no yield nor does anyone want to take risks in the long-term (bonds)."

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.45-7.47%, up from 7.42-7.44% Tuesday. The indicative yield on NABARD's five-year bonds was 7.42-7.43%, compared with 7.40-7.43% Tuesday. The indicative yield on NABARD's 10-year bonds was 7.50-7.52%, against 7.44-7.49% Tuesday.

In the secondary market, deals worth INR 106.51 billion were recorded on the National Stock Exchange and BSE combined, up from INR 105.11 billion Tuesday. Paper issued by HDB Financial Services, NABARD, Mahindra & Mahindra Financial Services, Eqyizen Investment, SBM Bank India, and Hyderabad Metropolitan Development Authority were traded actively.

Bonds worth INR 39.20 billion were issued Wednesday. Bajaj Finance raised INR 11.41 billion through the reissue of 7.93%, June 2029 bonds at a yield to maturity of 7.85%, dealers said. IndoStar Capital Finance raised INR 4 billion through the issuance of two bonds with different maturities. SMFG India Home Finance Co. raised INR 1.5 billion through the issuance of bonds maturing on May 29, 2029.

Thursday, primary activity is seen moderating with bond issuances worth INR 12.80 billion. Aditya Birla Capital plans to raise up to INR 12.50 billion through the reissue of two bonds with different maturities, dealers said. The company plans to raise up to INR 3.5 billion through the reissue of the 8.70%, July 2029 bonds and up to INR 9 billion through the reissue of the 8.10%, September 2029 bonds.

Non-banking finance companies are expected to tap the corporate bond market at current levels, the private-sector bank dealer said. "Market is expecting a (repo) rate hike, so they (non-banking finance companies) are coming out (with issuances) now," the dealer said. Market participants expect upcoming bond issuances in the three- to five-year segment after several fundraises in the three-year segment.

UDAY BONDS

In the secondary market, one Ujwal DISCOM Assurance Yojana bond worth INR 2 million was traded Wednesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

* INR 2.00 million of Telangana's 8.04%, 2031 bond was dealt at 7.0036%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

US$1 = INR 96.56

With inputs from Vaishali Tyagi

Edited by Rajeev Pai

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