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Informist, Wednesday, Sept. 16, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds ended lower Wednesday, tracking yields on Indian government bonds, dealers said. Trading activity remained subdued due to caution ahead of the outcome of the US Federal Open Market Committee's meeting later on Wednesday. Mutual funds and insurance companies were active participants in the secondary market, with papers in the 2028 and 2029 segments being traded most actively.

 

The indicative yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.75-7.78%, down from 7.80-7.85% Tuesday, while the indicative yield on NABARD's five-year bonds fell 5 basis points to 7.80-7.85% from 7.85-7.90% Tuesday. The indicative yield on NABARD's 10-year bonds fell to 7.82–7.85% from 7.90% Tuesday. The yield on the 10-year benchmark Indian government bond settled at 7.0524%, down from 7.0727% Tuesday. 

 

In the secondary market, deals worth INR 73.22 billion were recorded on the National Stock Exchange and BSE combined, up from INR 51.49 billion Tuesday. Papers issued by Bharti Telecom, Vedanta, Mahindra and Mahindra Financial Services, GS Pharmbutor, Manappuram Finance were actively traded.

 

Secondary market volume was low as market participants awaited the decision of the US rate-setting panel, dealers said. "It is (low) because of the US Fed's awaited decision only. I had expected better volume today (Wednesday) but it was low," a dealer at a public sector bank said.

 

"Many people are absent from the market. Second is the FOMC (decision). There will be a rate hike mostly," a dealer at a brokerage said on secondary market volume. "It is just a four-day (working days) week. Just two days are left, so people don't want to take positions," the dealer said. Indian financial markets were shut Monday for Ganesh Chaturthi. 

 

 

In the primary market Wednesday, Canara Bank raised INR 20.42 billion through Basel III-compliant additional tier-I, perpetual bonds at a coupon of 8.10%. The state-owned lender had planned to raise up to INR 45 billion, with the issue having a base size of INR 20 billion and a greenshoe option of INR 25 billion. It received bids totalling INR 56.83 billion in the coupon range of 7.30% to 8.95%, according to the bid book accessed by Informist.

 

Godrej Industries raised INR 7.5 billion through the issuance of bonds maturing in March 2032, dealers said. The bonds were fully subscribed at a coupon of 8.50%. PNB Housing Finance raised INR 5 billion and Godrej Housing Finance raised INR 4 billion, both through the issuance of five-year bonds.

 

Thursday, bonds worth INR 89.15 billion are slated to be issued. Avaada Ventures plans to raise up to INR 35.15 billion through the issuance of two bonds with different maturities. L&T Finance will seek to raise up to INR 25 billion through the reissue of bonds maturing in September 2029, while Bajaj Housing Finance will seek bids to raise up to INR 15 billion through the reissue of bonds maturing in August 2036. 

 

Kotak Mahindra Prime has sought bids to raise up to INR 8 billion through three bonds with different maturities, including two reissues. SBFC Finance will seek to raise INR 1 billion through the issuance of bonds maturing in June 2030. Paisalo Digital will seek to raise up to INR 1.8 billion through the issuance of 10-year bonds, while Care Health Insurance plans to raise INR 1 billion through 10-year bonds. Vivriti Capital plans to raise up to INR 1 billion through the issuance of two bonds with different maturities.

 

UDAY BONDS

In the secondary market, four Ujwal DISCOM Assurance Yojana bonds worth INR 9.00 million were traded Wednesday, according to data on the Reserve Bank of India's Negotiated Dealing System–Order Matching System.

* INR 3.00 million of Uttar Pradesh's 8.38%, 2027 bond was dealt at 7.8922%
* INR 3.00 million of Tamil Nadu's 7.72%, 2030 bond was dealt at 7.8015%

* INR 2.00 million of Telangana's 8.08%, 2029 bond was dealt at 7.4032%

* INR 1.00 million of Uttar Pradesh's 8.70%, 2031 bond was dealt at 7.9509%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	Wednesday	Tuesday
Three-year	7.75-7.78%	7.80-7.85%
Five-year	7.80-7.85%	7.85-7.90%
10-year	7.82–7.85%	7.90%

 

End

 

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

 

Edited by Avishek Dutta

 

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