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Informist, Thursday, Jul. 30, 2026

 

by Vaishali Tyagi

 

NEW DELHI – Corporate bond yields rose marginally Thursday, tracking higher government bond yields and Brent crude oil prices, dealers said. Buying interest remained dull as weak risk appetite amid fresh geopolitical escalation in West Asia kept traders sidelined, they said. Most traders were seen taking short positions, pushing yields higher, they said. 

 

"Following the fresh escalation, crude prices rose sharply on this, which dampened investor appetite and pushed corporate bond yields higher," a dealer at a brokerage firm said. Brent crude for October delivery rose to $89.50 per barrel on Thursday, up from Wednesday's close of $88.09 per barrel. 

 

Dealers said the corporate bond market saw limited activity as investors exited positions ahead of the Reserve Bank of India's monetary policy decision next week before taking fresh positions. The RBI will announce its monetary policy decision on Aug. 5, following a three-day meeting. Market participants widely expect the central bank to maintain a status quo, keeping the repo rate unchanged at 5.25%

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development rose marginally to 7.42-7.45% from 7.41–7.43% on Wednesday. The indicative yield on NABARD's five-year bond inched up to 7.38–7.40% from 7.36–7.38% Wednesday. The indicative yield on NABARD's 10-year bonds remained broadly unchanged at 7.46–7.51% due to subdued activity in the segment. The benchmark 6.94%, 2036 gilt yield closed at 6.81% Thursday, up from 6.804% the previous day, after rising to a high of 6.83% intraday.

 

In the secondary market, overall deals worth INR 120.36 billion were recorded on the National Stock Exchange and BSE combined, up from INR 83.32 billion Wednesday. Papers issued by Hyderabad Metropolitan Development Authority, Aditya Birla Capital, Kerala Infrastructure Investment Fund Board, Muthoot Fincorp, and Earlysalary Services were traded actively. Corporates and mutual funds were seen selling across tenures, while a few mutual funds and banks were seen buying. Insurance companies and pension funds remained broadly absent from the market. 

 

Funds raised through corporate bonds more than halved from Wednesday's levels. Bonds worth INR 41.60 billion were issued Thursday, down from INR 103.25 billion on the previous day. Jio Credit raised INR 10.25 billion by issuing two bonds, while NIIF Infrastructure Finance raised INR 5.5 billion by reissuing the 7.88%, August 2031 bonds. Hero FinCorp borrowed INR 3.25 billion by issuing two-year bonds, while Tata Projects mopped up INR 4 billion by issuing three-year bonds.

 

Friday, the primary market is expected to remain robust, with bond issuances aggregating to over INR 70 billion scheduled. UltraTech Cement has invited bids to borrow INR 50 billion by issuing three bonds. SMFG India Credit Co. plans to raise INR 11 billion through three-year bonds maturing on Aug. 3, 2029, and Mindspace Business Parks Real Estate Investment Trust plans to raise INR 6 billion through two-year bonds maturing on Aug. 3, 2028. Other issuers include IIFL Samasta Finance and Kotak Mahindra Prime.  

 

UDAY BONDS

In the secondary market, three Ujwal DISCOM Assurance Yojana bonds worth INR 12 million were traded Thursday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

* INR 10.00 million of Punjab's 8.45%, 2027 bond was dealt at 7.1738%.

* INR 2.00 million of Punjab's 8.47%, 2029 bond was dealt at 6.8712%.

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Thursday	Wednesday
Three-year	7.42-7.45%	7.41–7.43%
Five-year	7.38–7.40%	7.36–7.38%
10-year	7.46–7.51	7.45–7.50%

 

End

 

US$1 = INR 95.68

 

Edited by Saji George Titus

 

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