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Informist, Wednesday, Sept. 23, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds were unchanged Wednesday as market participants traded cautiously and avoided placing large bets ahead of the Reserve Bank of India's Monetary Policy Committee meeting in October, dealers said. Market participants are awaiting the indicative calendar for state borrowing for Jul-Sept to lend cues.

 

"People are expecting yields to go up. Primary issuances are also there," a dealer at a broking firm said on the marginal impact of a fall in Brent crude oil prices on corporate bond yields. "There's no panic selling right now, and buyers are also not interested in buying."

 

With Brent crude oil prices breaching the $100-per-barrel mark again, corporate bond market participants are trading conservatively, a dealer at a state-owned bank said. "(The corporate bond) market will take (a potential) rate hike positively. It will give clarity and direction... and also ease some inflationary pressure," the dealer at the public sector bank said. "(The corporate bond) market has already priced in more than 25 bps hike." The rate-setting panel's stance and the RBI governor's statement will also lend cues, the dealer said. 

 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.74-7.75%, against 7.72–7.76% Tuesday, while the indicative yield on NABARD's five-year bonds was unchanged at 7.75-7.80%. 

 

In the secondary market, deals worth INR 102.42 billion were recorded on the National Stock Exchange and BSE combined, down from INR 108.19 billion on Tuesday. Papers issued by Indian Railway Finance Corp., NABARD, Bajaj Finance, REC, L&T Finance, LIC Housing Finance, Reliance Industries, and Bajaj Housing Finance were actively traded.

 

Mutual funds and insurance companies were seen buying papers in the shorter segment, while pension funds were largely absent in the one-year and two-year segments. "Banks are not buying right now, whereas arranger banks are looking to sell papers," the dealer at the brokerage said. 

 

On Wednesday, Embassy Office Parks raised INR 10 billion through the issuance of three-year floating-rate bonds, dealers said. Axis Finance raised INR 4.63 billion through the issuance of bonds maturing in August 2031, dealers said. The financier had planned to raise up to INR 5 billion through the issue. Godrej Housing Finance raised INR 1.5 billion through the issuance of 10-year bonds, with the issue fully subscribed. 

 

Thursday, Clean Max Enviro Energy Solutions will seek bids for INR 25 billion through the issuance of bonds with different maturities. Tata Capital Housing Finance plans to raise up to INR 17.25 billion through the issuance of three-year bonds, dealers said. Bajaj Housing Finance will seek bids for up to INR 15 billion through the reissue of the 7.79%, August 2031 bond. 

 

Sammaan Capital plans to raise up to INR 15 billion through the reissue of three bonds with different maturities, while Equitas Small Finance Bank will seek to raise INR 5 billion through the issuance of 10-year bonds. Muthoot Fincorp has sought bids for INR 4.4 billion through the issuance of two bonds with different maturities. Utkarsh Small Finance Bank will seek to raise up to INR 3 billion through subordinated, lower tier-II seven-year bonds. 

 

Godrej Finance will seek bids for INR 2.5 billion through the reissue of the 8.50%, April 2036 bond. GIC Housing Finance will seek to raise up to INR 2 billion through the issuance of bonds maturing in December 2029. Muthoot Mercantile has sought bids to raise INR 1 billion through the issuance of bonds maturing in March 2029.  

 

UDAY BONDS

In the secondary market, three Ujwal DISCOM Assurance Yojana bonds worth INR 19.50 million were traded Wednesday, according to data on the Reserve Bank of India's Negotiated Dealing System–Order Matching System.

 

* INR 9.00 of Tamil Nadu's 7.74%, 2031 bond was dealt at 7.2798%

* INR 6.00 of Uttar Pradesh's 8.59%, 2030 bond was dealt at 7.35%

* INR 4.50 of Telangana's 8.27%, 2028 bond was dealt at 7.3005%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	Wednesday	Tuesday
Three-year	7.74-7.75%	7.72-7.76%
Five-year	7.75-7.80%	7.75-7.80%
10-year	N.A	N.A

 

End

 

US$1 = INR 95.74

 

Edited by Avishek Dutta

 

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