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Informist, Tuesday, Aug. 18, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on short-term corporate bonds ended higher Tuesday, tracking the rise in crude oil prices, which reached a two-week-high, dealers said. Market participants also tracked higher Indian government bond yields. Mutual funds, banks, and insurance companies were active in the secondary market, with bonds maturing in 2028 and 2029 traded actively. 

"Yields on corporate bonds rose around 4 bps (basis points) in the morning. Later, they retreated 2 bps, tracking the slight fall in crude and g-secs (government securities)," a dealer at a public sector bank said. At 1719 IST, Brent crude oil futures for October delivery traded at $90.82 per barrel, down from the day's high of $91.85 per barrel. 

 

The yield on three-year bonds issued by the National Bank for Agriculture and Rural Development rose to 7.40–7.45% from 7.42–7.43% on Monday, while the indicative yield on NABARD's five-year bonds rose to 7.46-7.47% from 7.45% on Monday. The indicative yield on NABARD's 10-year bond was unchanged at 7.50–7.55%. The yield on the 10-year benchmark 6.94%, 2036 Indian government bond rose to 6.83% Tuesday from 6.81% Monday. 

 

In the secondary market, deals worth INR 105.62 billion were recorded on the National Stock Exchange and BSE combined Tuesday, up from INR 87.41 billion Monday. Papers issued by REC, Telangana State Industrial Infrastructure Corp., TVS Motor Co., Cholamandalam Investment and Finance Co., and NTPC Green Energy were actively traded.

 

Bonds worth INR 15.10 billion were slated to be raised Tuesday. Sundaram Finance raised INR 7.5 billion by reissuing the 7.74%, July 2028 bonds, dealers said. The issue was fully subscribed. 

 

Market participants seemed divided on primary market activity in the days ahead. While a dealer at a brokerage said primary market activity was expected to decline amid elevated yields, another said non-banking financial companies were expected to continue issuing bonds.

 

On Wednesday, Tata Capital Housing Finance and Bajaj Housing Finance will tap the market to raise up to INR 20 billion each by issuing five-year bonds, dealers said. IndiGrid Infrastructure Trust plans to raise INR 11 billion by issuing a five-year and a 10-year bond. L&T Finance plans to raise up to INR 9 billion by reissuing the 7.79%, June 2031 bond.  

 

Market participants will track developments in the US-Iran war and crude oil prices to take positions on corporate bonds Wednesday. "It (movement of yields) totally depends on where crude is going," the dealer at the public sector bank said.  

 

UDAY BONDS

In the secondary market, two Ujwal DISCOM Assurance Yojana bonds worth INR 11.60 million were traded Tuesday, according to data on the RBI's Negotiated Dealing System-Order Matching System.

 

* INR 7.00 million of Punjab's 8.47%, 2029 bond was dealt at 6.8221%

* INR 4.60 million of Punjab's 8.65%, 2028 bond was dealt at 6.7547%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

Tenure	Tuesday	Monday
Three-year	7.40–7.45%	7.42-7.43%
Five-year	7.46-7.47	7.45%
10-year	7.50–7.55%	7.50–7.55%

 

 

End

 

Edited by Saji George Titus

 

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