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Informist, Monday, Sept. 21, 2026

 

By Nandini Sinha

 

MUMBAI – Yields on corporate bonds ended broadly steady Monday after rather dull trade as market participants await the decision of the Reserve Bank of India's Monetary Policy Committee on a rate hike, dealers said. While yields moved upwards during early trade hours, they ended broadly at Friday's levels. Papers maturing in the three-year to five-year segments were actively traded and dealers speculated insurance companies bought papers in the three-year segment. 

 

The indicative yield on three-year bonds issued by the National Bank for Agriculture and Rural Development was 7.70–7.75%, against 7.73–7.75% Friday, while the indicative yield on NABARD's five-year bonds was 7.80%, against 7.80–7.82% Friday. NABARD's 10-year paper was not traded, with dealers saying a few pension funds are not bidding at current levels. 

In the secondary market, deals worth INR 91.44 billion were recorded on the National Stock Exchange and BSE combined, down from INR 120.33 billion on Friday. Papers issued by LIC Housing Finance, Kotak Mahindra Prime, Small Industries Development Bank of India, Bajaj Housing Finance, and REC were traded actively.

 

"Everybody is waiting for MPC. Crude is still above $100," a dealer at a state-owned bank said. "Globally also (bond) yields have gone up. Bank of Japan also hiked rates... There's no view getting formed right now, MPC will give some clarity," the dealer said. Bank of Japan raised its benchmark interest rate to 1.25% from 1% on Friday.

 

Selling pressure could be expected ahead of the MPC meeting, the dealer said. The dealer expects a rate hike of 25 basis points at the MPC meeting in October. 

 

On Tuesday, Aditya Birla Capital will tap the market to raise up to INR 5 billion through the reissue of the 8.07% April 2036 bond, dealers said. Muthoot Capital Services will seek bids to raise up to INR 1.5 billion through the issuance of two-year bonds. Edelweiss Asset Reconstruction Co. Ltd. plans to raise INR 1.25 billion through the reissue of zero-coupon bonds maturing on Oct. 6, 2029. 

 

UDAY BONDS

In the secondary market, one Ujwal DISCOM Assurance Yojana bonds worth INR 100.00 million was traded Monday, according to data on the Reserve Bank of India's Negotiated Dealing System–Order Matching System.

 

* INR 100.00 of Uttar Pradesh's 8.45%, 2029 bond was dealt at 7.2586%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

 

Tenure	Friday	Friday
Three-year	7.70–7.75%	7.73-7.75%
Five-year	7.80%	7.80-7.82%
10-year	N.A	7.85%

 

End

 

Edited by Avishek Dutta

 

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