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Informist, Wednesday, Aug. 5, 2026

By Nandini Sinha

MUMBAI – Yields on corporate bonds ended lower Wednesday tracking the yields on Indian government bonds, dealers said. A fall in Brent crude oil prices and US Treasury yields also contributed to the fall in corporate bond yields. The corporate bond market saw mixed participation, with banks seen on the selling side and mutual funds buying as well as selling papers.

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.38–7.40%, down four basis points from 7.42–7.44% Tuesday. The indicative yield on NABARD's five-year bonds was 7.40% from 7.42–7.44% Tuesday. The yield on the 10-year benchmark 6.94%, 2036 Indian government bond settled at 6.77% Wednesday, down from 6.82% Tuesday.

With the Reserve Bank of India's Monetary Policy Committee leaving the repo rate unchanged, market participants expect bond issuances to pick up pace. "REC has come now. Other PSUs (public sector undertakings) should also come," a dealer at a state-owned bank said. REC plans to raise a total of INR 70 billion through the issuance of two bonds with different maturities, dealers said. The power sector financier plans to raise up to INR 30 billion through three-year bonds and up to INR 40 billion through 15-year bonds. 

"Remain bullish (on corporate bond issuances). NABARD may also come again," a dealer at another public sector bank said about corporate bond issuances. Non-banking finance companies have been continuously tapping the market to raise funds in small tranches mainly on account of refinancing, the dealer said.
 

In the secondary market, deals worth INR 141.10 billion were recorded on the National Stock Exchange and BSE combined, up from INR 139.14 billion Tuesday. Papers issued by REC, Bajaj Finance, Power Finance Corp., UltraTech Cement, Hindustan Petroleum Corp., and State Bank of India were actively traded.

On Thursday, market participants plan to raise up to INR 17.05 billion through issuances. Lloyds Metals and Energy plans to raise INR 7 billion through the issuance of 10-year bonds, dealers said. Muthoot MCred Ltd. will seek bids for INR 4 billion through three-year bonds, while Prospera Healthcorp plans to raise INR 3.35 billion through three-year bonds. Purva Oak will seek bids to raise a total of INR 1.45 billion through the issuance of three bonds with different maturities.

Market participants will track the developments in the US-Iran war, particularly a deal over the Strait of Hormuz. US President Donald Trump said the deal on the critical shipping route could come as early as Wednesday or Thursday. "I think over the next few days, if the truce happens, yields (on corporate bonds) could come down by 10-15 bps across tenors," a dealer at a mutual fund said.

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds worth INR 10.18 million were traded Wednesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

* INR 5.09 million of Telangana's 8.08%, 2029 bond was dealt at 7.3205%.

* INR 5.09 million of Tamil Nadu's 7.74%, 2029 bond was dealt at 7.3215%.

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

Edited by Deepshikha Bhardwaj

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