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Informist, Monday, Jul. 13, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds ended broadly steady Monday due to a lack of any significant cues, dealers said. Insurance companies and mutual funds were the most active participants, with papers in up to three-year segment being traded actively.

 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was unchanged at 7.33-7.35% compared with Friday, while the indicative yield on NABARD's five-year bonds was 7.30-7.33, compared with 7.32-7.35% Friday. 

 

Volume in the secondary market was low due to a lack of buyers, a dealer at a state-owned bank said. "There is uncertainty because of the (US-Iran) war. It gets escalated, and then the market gets given," the dealer at the public sector bank said. "(Market participants) are waiting for more clarity."

 

The dealer also attributed a lack of inflows into mutual funds as the reason behind subdued market activity. "(Corporate bond) market gets active when they (mutual funds) get flows. Fresh flows are not coming," the dealer said.

 

In the secondary market, deals worth INR 105.24 billion were recorded on the National Stock Exchange and BSE combined Monday, down from INR 117.69 billion Friday. Papers issued by NABARD, LIC Housing Finance, Tata Capital Housing Finance, Small Industries Development Bank of India, and Bajaj Finance were actively traded. 

 

Bonds worth INR 22.25 billion were issued Monday, sharply up from issuances worth 9.75 billion Friday. Tata Power Co. raised INR 15 billion through five-year bonds at 7.50%, dealers said. The company had planned to raise INR 15 billion. Nomura Fixed Income Securities raised INR 3 billion through bonds maturing in August 2028 at 8.20%. 

 

On Tuesday, Muthoot Finance will seek bids for up to INR 15 billion through bonds maturing in October 2029, while Nuvama Wealth Finance will tap the market to raise up to INR 3.5 billion through the issuance of bonds maturing in January 2029.

 

Wagholi Estates has sought bids for INR 2 billion through the issuance of bonds maturing on Jan. 15, 2029, while Mizuho Capsave Finance has sought bids for up to INR 1.5 billion through five-year bonds.  

 

Market participants expect a rise in corporate bond yields Tuesday following the release of the headline inflation data. The CPI inflation rose to 4.38% on year in June from 3.93% in May.  

 

UDAY BONDS

In the secondary market, three Ujwal DISCOM Assurance Yojana bonds worth INR 28.30 million were traded on Monday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

* INR 19.00 million of Punjab's 8.61%, 2030 bond was dealt at 7.0798%

* INR 7.00 million of Tamil Nadu's 8.04%, 2029 bond was dealt at 6.9005%

* INR 2.30 million of Punjab's 8.65%, 2028 bond was dealt at 6.8994%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Monday	Friday
Three-year	7.33-7.35%	7.33-7.35%
Five-year	7.30–7.33%	7.32-7.35%
10-year	--	--

 

End

 

Edited by Deepshikha Bhardwaj

 

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