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Informist, Thursday, Aug. 6, 2026

 

By Nandini Sinha 

 

MUMBAI – Yields on corporate bonds ended lower Thursday across tenors, tracking the yields on Indian government bonds and lower crude oil prices, dealers said. Mutual funds remained the most active participants, as they bought and sold paper while churning their portfolios. Some banks and primary dealerships were seen selling corporate bonds. Comfortable liquidity levels also supported the fall in the yields on corporate bonds.

 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.35%, down from 7.38–7.40% Wednesday, while the indicative yield on NABARD's five-year bonds was 7.39–7.40% against 7.40% Wednesday. The indicative yield on NABARD's 10-year bond was 7.45%. The yield on the 10-year benchmark Indian government bond settled at 6.7666% Thursday, down from 6.7722% Wednesday. 

 

In the secondary market, deals worth INR 121.93 billion were recorded on the National Stock Exchange and BSE combined, down from INR 141.10 billion Wednesday. Papers issued by NABARD, REC, Small Industries Development Bank of India, Jio Credit, Bajaj Finance, and Indian Railway Finance Corp. were actively traded.

 

"Mostly people are trading in small-small amounts," a dealer at a public sector bank said. "Perhaps they need more clarity on the (US-Iran) war." Iran has said that an agreement with Oman on the Strait of Hormuz was in the final stages.

 

On Friday, market participants plan to raise up to INR 131 billion through bond issuances. State-run REC plans to raise up to 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 the issuance of bonds maturing on Aug. 31, 2029 and up to INR 40 billion through the issuance of bonds maturing on Aug. 31, 2041.

Market participants expect the cut-off on REC's August 2029 bonds to be in the range of 7.20–7.35%, while that on its August 2041 bonds to be from 7.45-7.55%. Traders expect participation from banks and mutual funds for REC's August 2029 bonds and by pension funds and insurance companies for August 2041 bonds. However, a market participant was unsure of participation by pension funds as they said pension funds do not have many inflows at the moment.

 

Among other issuers Friday, Bajaj Finance will seek bids for up to INR 20 billion through the issuance of bonds maturing in November 2029 while Bajaj Housing Finance will tap the market for up to INR 20 billion through the issuance of bonds maturing in September 2029. 

 

TVS Motor Co. plans to raise INR 10 billion through the issuance of bonds maturing in November 2029 while Navi Finserv plans to raise INR 3.5 billion through the reissue of two bonds. Nuwama Wealth Finance will seek bids for up to INR 3.5 billion through the issuance of bonds maturing in June 2028. 

 

Ashok Leyland will seek bids for INR 3 billion through the issuance of two-year bonds, while Avanse Financial Services will seek bids for INR 1 billion through the issuance of bonds maturing in September 2027. 

 

UDAY BONDS

In the secondary market, no Ujwal DISCOM Assurance Yojana bonds were traded Thursday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Thursday	Wednesday
Three-year	7.35%	7.38–7.40%
Five-year	7.39–7.40%	7.40%
10-year	7.45%	--

 

End

 

Edited by Deepshikha Bhardwaj

 

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