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Informist, Tuesday, Sept. 29, 2026

 

By Vaishali Tyagi

 

NEW DELHI – Yields on corporate bonds ended broadly unchanged despite a fall in government bond yields, as traders in the corporate bond market remained cautious before offloading any bond issuances, dealers said. Traders are staying away from the market and avoiding large bets as they are unable to gauge risks, they said.

"The fall in g-sec (government securities) yields was not reflected in corporate bonds... directionally, if you see, there was a marginal fall at the start of the day due to fresh bets, and it was also later supported by a further fall in crude prices, but there was no major change in bond yields across tenures, though trading remained limited to the three-year segment," said a dealer at a brokerage firm. "People are not willing to build books in such a highly uncertain environment, they said. 

 

With the Reserve Bank of India's monetary policy meeting outcome due on Oct. 7, investors are staying away from long-duration securities and offloading low-yielding papers, anticipating a rate hike in October.

 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.86-7.88% Tuesday, against 7.87-7.88% Monday, while the indicative yield on NABARD's five-year bonds was 7.86-7.88%, similar to 7.87-7.89% Monday. The yield on the 10-year NABARD bond was at 7.91% Tuesday.

 

In the secondary market, deals worth INR 129.87 billion were recorded on the National Stock Exchange and BSE combined, slightly higher than INR 108.99 billion on Monday. Papers issued by Bajaj Finance, Kerala Infrastructure Investment Fund Board, Manappuram Finance, Muthoot Fincorp, Capri Global Capital, Adani Airport Holdings, Lucina Land Development, Keertana Finserv, and Navi Finserv were actively traded. 

 

In the primary market, corporate bond supply remained on the higher side at INR 104 billion Tuesday, similar to INR 107.85  billion on Monday. On Tuesday, several large issuers raised funds, with relatively new entrants along with regular issuers tapping the market. Dealers said issuers across sectors are tapping the market to borrow cheaper capital to meet their requirements. Non-banking financial companies are issuing bonds to raise capital to meet their disbursal requirements, as credit offtake is expected to pick up in October ahead of the festive season.

 

On Tuesday, key issuers included Vedanta, which raised INR 20 billion via three-year bonds at 8.75%. Apollo Tyres raised INR 5 billion, Motilal Oswal Financial Services borrowed INR 9 billion, while Sundaram Finance raised INR 1.50 billion, according to deals confirmed so far by market participants. As the RBI policy nears, primary supply is also gradually cooling off. "A lot of people have front-loaded funds in order to take advantage of better rates... but now it seems investor appetite is coming down as people are turning a little cautious, with everyone pricing in a 25-basis-point rate hike in the RBI policy," a dealer at a brokerage firm said.

 

On Wednesday, issuances worth INR 145 billion are set to hit the corporate debt market. If not for Reliance Industries' bonds, issuances would have been worth only INR 15.29 billion. While issuance numbers have gone down sharply, one mammoth-sized deal by Reliance Industries has pushed the overall quantum higher. However, both the overall quantum and the number of bonds are significantly lower from Monday and last week.  

 

Reliance Industries plans to raise up to INR 130 billion through 10-year bonds maturing on Oct. 1, 2036. Summit Digitel Infrastructure has invited bids to raise INR 8.50 billion through floating rate bonds maturing on Sept. 28, 2029. Other key issuers included Belstar Microfinance, Summit Digitel Infrastructure, and CreditAccess Grameen Ltd.

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	Tuesday	Monday
Three-year	7.86-7.88%	7.87-7.88%
Five-year	7.86-7.88%	7.87-7.89%
10-year	7.91%	7.90%

 

UDAY BONDS
In the secondary market, seven Ujwal DISCOM Assurance Yojana bonds worth INR 39.30 million were traded on Tuesday, according to data on the Reserve Bank of India's Negotiated Dealing System–Order Matching System.

 

* INR 19.00 of Punjab's 8.61%, 2030 bond was dealt at 7.3925%

* INR 7.00 of Tamil Nadu's 8.04%, 2029 bond was dealt at 7.0984%

* INR 3.50 of Punjab's 8.47%, 2029 bond was dealt at 7.3493%

* INR 3.00 of Uttar Pradesh's 8.49%, 2028 bond was dealt at 6.6116%

* INR 2.50 of Uttar Pradesh's 8.35%, 2029 bond was dealt at 7.0992%

* INR 2.30 of Punjab's 8.65%, 2028 bond was dealt at 6.9535%

* INR 2.00 of Telangana's 8.08%, 2029 bond was dealt at 7.3335%

 

End

 

Edited by Avishek Dutta

 

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