More Stories

Informist, Tuesday, Jul. 28, 2026

 

By Meera Nair

 

MUMBAI – Yields on certificates of deposit and commercial paper were unchanged across key tenors Tuesday as market participants remained in a wait-and-watch mode after military conflict between the US and Iran eased, dealers said. Despite an improvement in liquidity and primary issuance, participants largely stayed on the sidelines to assess market conditions at the month-end.

 

Yields on three-month, six-month, and one-year "AAA"-rated certificates of deposit were unchanged at 6.80-6.85%, 6.90-6.95%, and 7.00-7.05%, respectively, from Monday. Dealers said secondary market activity remained concentrated in papers maturing in August, February, and March.

 

Yields on "AAA"-rated commercial paper issued by non-banking finance companies were also steady from Monday. Three-month, six-month, and one-year CPs were quoted at 7.15-7.20%, 7.40-7.45%, and 7.70-7.75%, respectively.

 

"After the geopolitical tensions cooled, participants did not rush back into the market. They are taking time to assess how market conditions evolve at the month-end despite better liquidity," a dealer at a brokerage firm said.

 

Primary issuance of certificates of deposit rose to INR 16 billion as of 1709 IST from INR 12.25 billion Monday, according to data from Clearing Corp. of India Ltd. Jammu and Kashmir Bank Ltd., CTBC Bank Co. Ltd., and Indian Bank were the only issuers.

 

Indian Bank raised INR 9.5 billion through a 321-day CD at a weighted average yield of 7.09%. Jammu and Kashmir Bank raised INR 5 billion through a 212-day CD at a weighted average yield of 7.70%, while CTBC Bank raised INR 1.5 billion through a 233-day CD at 7.30%.

 

Commercial paper issuance also increased to INR 55.35 billion as of 1715 IST from INR 47.17 billion Monday. Major issuers included L&T Finance, Grasim Industries Ltd., PNB Housing Finance Ltd., HDFC Securities Ltd., and Aditya Birla Money Ltd. L&T Finance raised a total of INR 6 billion through 55-day and 79-day CPs at weighted average yields of 6.87% and 7.22%, respectively. Grasim Industries raised INR 7.5 billion through 90-day CPs at a weighted average yield of 6.90%, while PNB Housing Finance raised INR 8 billion at 7.07%.

 

Secondary market activity was mixed. CD turnover fell to INR 69.35 billion as of 1715 IST from INR 93.75 billion Monday, according to CCIL data, while CP turnover rose to INR 54.50 billion from INR 44.25 billion.

 

"I personally believe rates could soften further tomorrow, though it is difficult to predict how the rest of the week will play out," the dealer said.

 

The RBI's net liquidity absorbed—a proxy for the systemic liquidity surplus—rose to INR 1.00 trillion Monday from INR 969.81 billion Sunday. Cash balances parked with the RBI increased marginally to INR 8.11 trillion from INR 8.10 trillion. Dealers said the liquidity surplus improved slightly due to government spending, although the change was not significant enough to point to any major liquidity inflows.

 

"Liquidity has improved from the previous session, and we expect conditions to remain comfortable over the coming days unless any fresh uncertainty emerges," the dealer said.

 

--Primary market
* The Jammu and Kashmir Bank Ltd., CTBC Bank Co. Ltd., and Indian Bank were the CD issuers Tuesday.

* L&T Finance, Grasim Industries Ltd., PNB Housing Finance Ltd., HDFC Securities Ltd., and Aditya Birla Money Ltd., were among the CP issuers Tuesday.

 

--Secondary market

* HDFC Bank Ltd.'s CD maturing Aug. 6 was traded once at a weighted average yield of 6.30%.
* Aditya Birla Money Ltd.'s CP maturing Wednesday was traded twice at a weighted average yield of 5.39%.

 

The following were the volumes, in INR billion, in the secondary market for short-term debt at 1715 IST, as detailed on CCIL's F-TRAC platform:

 

Certificates of deposit		Commercial paper
Tuesday	Monday	Tuesday	Monday
69.35	93.75	54.50	44.25

 

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.