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Informist, Monday, Jul. 20, 2026

 

By Vaishali Tyagi

 

NEW DELHI – Fundraising through short-term debt instruments remained subdued as sentiment in the money market stayed weak amid rising crude oil prices earlier in the day and escalating tensions in West Asia, dealers said.

The CP-CD market witnessed some sell-off as traders turned risk-averse and avoided placing large bets, hence issuances remained limited, dealers said. "People were selling papers and trimmed their positions after crude prices saw some uptick at the first half of the day and people are expecting escalation in West Asia war situation," a dealer at a brokerage firm said. Brent crude for September delivery rose to a more than one-month high of $91 per barrel, up from $88.10 per barrel on Friday.

 

Primary CD issuance significantly fell to INR 13 billion from INR 68.50 billion Friday, according to data from Clearing Corp. of India Ltd. Only three banks raised funds by issuing CDs Monday. Union Bank of India was the largest issuer and raised INR 7.50 billion via three-month CD at 6.85%. Indian Bank and IDFC First Bank issued CDs to raise INR 1.50 billion at 7.15% and INR 4 billion at 7.35%, respectively, according to data from Clearing Corp. of India Ltd.

 

Primary market issuance of commercial papers saw a marginal increase over the previous day. However, overall volume remained on the lower side. CP issuances rose to INR 39.60 billion from INR 21.05 billion Friday. Tata Steel raised INR 10 billion via 30-day CP at 6.70%, while Mahindra and Mahindra Financial Services borrowed 6 billion at 7.45% via February 2027 CP. Other major issuers included IIFL Finance, HDFC Securities, Adani Ports and Special Economic Zone. 

 

Dealers said activity remained subdued in both the primary and secondary markets. This had little impact on yields, which moved in a mixed manner and stayed in a narrow band based on segment demand. Three-month AAA-rated certificates of deposit were unchanged at 6.80-6.85%. Six-month yields rose marginally by 5 basis points to 7.00-7.10% from 6.95-7.00% on Friday. One-year yields eased to 7.20-7.30% from 7.30-7.35%.

 

Yields on commercial papers issued by non-banking finance companies were unchanged across key tenors. Three-month AAA-rated papers were quoted at 7.25-7.30%, six-month papers at 7.40-7.45%, and one-year papers at 7.60-7.65%.

 

In the secondary market, turnover in CDs fell to INR 39 billion, massively down from INR 88.40 billion Friday, according to CCIL data, at 1829 IST, commercial paper turnover rose to INR 43.10 billion from INR 28.00 billion.

 

--Primary market
* Union Bank of India, IDFC FIRST Bank, and Indian Bank were the only CD issuers Monday.   

* Mahindra and Mahindra Financial Services,  Tata Steel, IIFL Finance, HDFC Securities, Adani Ports and Special Economic Zone, were among the CP issuers Friday.

 

--Secondary market

* Bank of Baroda's CD maturing Tuesday was traded twice at a weighted average yield of 5.26%
* Sikka Ports and Terminals Ltd.'s CP maturing Tuesday was traded once at a weighted average yield of 5.81%

 

The following were the volumes, in INR billion, in the secondary market for short-term debt at 1700 IST, as detailed on CCIL's F-TRAC platform:

 

Certificates of deposit		Commercial paper
Monday	Friday	Monday	Friday
32.75	88.40	43.10	28.00

 

End

 

Edited by Deepshikha Bhardwaj

 

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