India Corporate Bonds
Yields up tracking rise in crude; US FOMC decision eyed
This story was originally published at 19:40 IST on 29 July 2026
Register to read our real-time news.Informist, Wednesday, Jul. 29, 2026
By Nandini Sinha
MUMBAI – Yields on corporate bonds ended higher Wednesday across tenors as Brent crude oil prices rose due to the latest escalation in the US-Iran war, dealers said. Trading activity remained limited in the secondary market as market participants await the US Federal Open Market Committee's decision on policy rates. Insurance companies and state-owned banks were seen buying corporate bonds, while mutual funds and primary dealerships sold papers.
At 1701 IST, Brent crude oil futures for October delivery traded at $85.83 a barrel, up from the previous close of $82.08 per barrel. Market sentiment dampened after the latest escalation in the US-Iran conflict. Iran attacked a US military base in Jordan and halted three oil tankers in the Strait of Hormuz, while the US and Saudi Arabia struck Iran-backed forces in Iraq.
The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.41–7.43%, up from 7.37–7.39% Tuesday. The indicative yield on NABARD's five-year bond was up at 7.36–7.38% from 7.33–7.36% Tuesday. The indicative yield on NABARD's 10-year bonds was 7.45–7.50%.
In the secondary market, deals worth INR 42.94 billion were recorded on the National Stock Exchange and BSE combined at 1500 IST, slightly down from INR 44.72 billion at the same time Tuesday. Papers issued by Indian Railway Finance Corp., HDB Financial Services, Small Industries Development Bank of India, HDFC Bank, and REC were traded actively.
Wednesday, State Bank of India raised INR 46.91 billion through the issuance of perpetual, subordinated Basel-III-compliant Additional Tier 1 bonds, setting a coupon of 7.75%. The issue had a base size of INR 30 billion and a green-shoe option of INR 20 billion. The issue had a call option, exercisable on Jul. 30, 2031. According to the bid book accessed by Informist, the company received 89 bids aggregating to INR 63.81 billion in the coupon range of 7.60–8.20%.
Market participants plan to raise up to INR 40.60 billion Thursday. Jio Credit has sought bids for up to INR 20 billion through the issuance of two bonds with different maturities, dealers said. NIIF Infrastructure Finance plans to raise up to INR 5.5 billion through the reissue of the 7.88%, August 2031 bonds.
Hero FinCorp will seek to raise up to INR 5 billion through the issuance of two-year bonds, while Tata Projects plans to raise INR 4 billion through the issuance of three-year bonds. Navi Finserv will seek bids for INR 1.75 billion through the reissue of the 10.30%, May 2028 bonds.
Northern Arc Capital has sought bids for up to INR 1.5 billion through the issuance of two-year bonds, while Share India Securities plans to raise up to INR 1.5 billion through the issuance of bonds maturing in August 2028.
The US Federal Open Market Committee's rate decision late Wednesday is expected to lend cues to yields on corporate bonds Thursday, a dealer at a brokerage firm said. "Expect a status quo (on interest rate), but will see what they (US Federal Reserve Chair Kevin Warsh) have to say," the dealer said.
UDAY BONDS
In the secondary market, three Ujwal DISCOM Assurance Yojana bonds worth INR 15.50 million were traded Wednesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.
* INR 10.00 million of Punjab's 8.45%, 2027 bond was dealt at 7.4836%.
* INR 4.50 million of Uttar Pradesh's 8.77%, 2031 bond was dealt at 7.7238%.
* INR 1.00 million of Punjab's 8.47%, 2029 bond was dealt at 6.8875%.
BENCHMARK LEVELS FOR CORPORATE BONDS:
|
Tenure |
Wednesday |
Tuesday |
|
Three-year |
7.41–7.43% | 7.37–7.39% |
|
Five-year |
7.36–7.38% | 7.33–7.36% |
|
10-year |
7.45–7.50% | -- |
End
Edited by Akul Nishant Akhoury
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