India Corporate Bonds: Yields flat as most investors on sidelines

Informist, Tuesday, Sep 5, 2023


By Asmita Patil


MUMBAI – Yields on corporate bonds remained steady in the secondary market today as most investors stayed on the sidelines due to lack of significant domestic cues, dealers said.


"Activity remained dull today because even underlying g-sec (government securities market) is not offering any cues," said a debt fund manager with a mid-sized mutual fund house.


Yield on 10-year benchmark government bond ended at 7.2068%, compared to 7.2047% on Monday.


A few mutual fund houses were active in the secondary market, but the trade was restricted to the shorter end of the curve, dealers said.


"Mutual funds are not getting flows, and they don't have a view to deploy whatever funds that are there," said a dealer with a mid-sized brokerage firm.


According to the Association of Mutual Funds in India, mutual funds saw net inflows of 614.40 bln rupees in July, of which only 6.48 bln rupees were in corporate bond funds.


Lack of investor participation kept trade volume subdued, with the turnover on the National Stock Exchange and BSE combined at 40.57 bln rupees, as against 45.13 bln rupees on Monday.


Papers of REC, National Bank for Agriculture and Rural Development, Andhra Pradesh State Beverages Corp, HDFC Bank, Power Grid Corp, Small Industries Development Bank of India, and Indiabulls Housing Finance were traded.


Issuances in the primary market have been muted since past few days.


"Issuers are delaying their bond offerings as far as possible with a view that yields will fall in future. They are managing with the help of short-term (debt) or maybe they are using their bank lines efficiently," said a senior official with a mid-sized mutual fund house.


According to merchant bankers, primary market may gain traction next week as some non-banking finance companies are in the pipeline to tap the market.



In the secondary market, Ujwal DISCOM Assurance Yojana bonds worth 762.60 mln rupees were traded at a weighted average yield of 7.2550-7.7899%, according to data from the Reserve Bank of India's Negotiated Dealing System-Order Matching System.


* 54.5 mln rupees of Tamil Nadu's 2025–27 bonds were traded at 7.5200%

* 2 mln rupees of Telangana's 2029 bonds were traded at 7.4946%

* 555.60 rupees of Haryana's 2024–2026 bonds were traded at 7.2550-7.5200%

* 32 mln rupees of Jharkhand's 2026 bonds were traded at 7.5200%

* 70 mln rupees of Rajasthan's 2022–26 bonds were traded at 7.5200-7.5700%

* 48.50 mln rupees of Chhattisgarh's 2024 bonds were traded at 7.7899%















Edited by Ashish Shirke


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


© Informist Media Pvt. Ltd. 2023. All rights reserved.

Other News.

Facing negative net worth, Spencer’s Retail to shut loss-making stores

Informist, Thursday, Feb 22, 2024 –Source: Spencer's Retail to shut down all loss-making stores–Source: Spencer's Retail to focus only on Delhi, Kolkata, Hyderabad–Source: Spencer's Retail to shut stores due to accumulated losses–CONTEXT: Spencer's Retail consol net worth (-)5.1 bln rupees end-Dec–Source: Spencer's Retail to right-size ops at corporate level By Avishek Rakshit KOLKATA – Aiming to bounce back to the black […]

Himachal budget ups FY25 pension outgo by 10% on revert to old scheme

Informist, Thursday, Feb 22, 2024 By Krity Ambey NEW DELHI – Himachal Pradesh, in its Budget for 2024-25 (Apr-Mar), has raised the estimate of expenditure towards pension in the next fiscal year to 102.54 bln rupees, up 10% from the revised estimate of 93.18 bln rupees for the current fiscal. This comes on the back of the state's decision to switch to […]

Grasim launches Birla Opus paints, aims to be profitable in 3 years

Informist, Thursday, Feb 22, 2024 –Grasim launches paints business under 'Birla Opus' brand –Grasim Chairman Birla: Entered paints business on infra opportunity –Grasim Chairman Birla: Launching Panipat, Ludhiana, Cheyyar plants –Grasim Chairman Birla:Chamarajanagar plant to be launched by Apr-Jun –Grasim Chairman Birla: Kharagpur plant to be launched by Jan-Mar 2025 –Grasim: Launching services in Punjab, Haryana, Tamil Nadu in Mar –Grasim:To launch […]