Informist, Monday, Nov 13, 2023

By Abhinaba Saha 

MUMBAI – Yields on corporate bonds traded flat in the secondary market today amid low trade volume, as investors exercised caution ahead of the release of the domestic inflation print for October, dealers said.    

Data released after market hours showed domestic CPI inflation fell to 4.87% in October from 5.02% in September, marginally higher than expectations of 4.8%. Core inflation was at 4.2%, the lowest since March 2020.

In the secondary market, only mutual funds were active on both the buying and selling side, market participants said.

"Market was dull today, more than half of the people were on holiday. Shorter end was totally dull; in the longer end, there was some demand from mutual funds and a few pension funds," said a debt-dealer at a large mutual fund house. 

Activity in the secondary market remained subdued amid a truncated week due to Diwali, dealers said. Domestic money markets will be closed on Tuesday due to a scheduled holiday for Diwali. 

A few big trades in long-term papers aided trade volumes today, with deals worth 58.05 bln rupees being recorded on the National Stock Exchange and BSE combined, against 32.47 bln rupees on Friday.

Bonds issued by REC, Uttar Pradesh Power Corp, Creditaccess Grameen, Indiabulls Housing Finance, Muthoot Fincorp, Muthoot Fincorp, and Spandana Sphoorty Financial were traded the most today.

"Activity might pick up on Wednesday, after US and Indian inflation data is released. But mostly it will be limited to government bonds. There is not much traction in the corporate bond market now," the dealer said. 

Market participants also await US CPI data for October amid ongoing volatility in US Treasury yields, dealers said. The CPI data will give insight into the rate trajectory in the world's largest economy. 

Core US CPI is expected to rise 0.3% month-on-month in October and 4.1% on year, according to a poll by Reuters.

"With (US) interest rates seeming to consolidate around current levels and no anticipated cuts on the part of RBI in the near future, it seems like a good time for primary issuances to pick up," said Maksim Zenkov, head of fixed income for India market at Cbonds, an information platform focused on bonds.   

On Wednesday, NIIF Infrastructure Finance plans to raise up to 9 bln rupees through bonds maturing in 12 years. Tata Capital Financial Services will also tap the market to raise up to 5 bln rupees by reissuing bonds maturing on Jul 27, 2033.  

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds worth 75 mln rupees were traded at a weighted average yield of 7.7217-7.7235%, according to data from the Reserve Bank of India's Negotiated Dealing System-Order Matching System.

* 45 mln rupees of Tamil Nadu's 2026 bonds were traded at 7.5084%

* 10 mln rupees of 2032 bonds were traded at 7.6546%

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

Edited by Avishek Dutta

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.

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Informist, Tuesday, Oct 25, 2022

By Subhana Shaikh

MUMBAI – Yields on corporate bonds ended on a steady note in the secondary market today amid low trade volume as investors refrained from placing large bets due to a truncated week, dealers said.

Domestic financial markets were closed Monday on account of Diwali and will be closed again on Wednesday.

"There was little activity on the secondary side of the corporate bond market with minimal investor participation," a dealer with a mid-sized brokerage said. "Brokerages and treasuries also closed early today because of festive season as mostly people are in holiday mode."

A few fund houses, insurance companies, and brokerage houses were active in the secondary market but in small quantum, which kept yields steady, dealers said.

Bonds issued by Bank of India, REC, Indian Railway Finance Corp, Andhra Pradesh State Beverages Corp, Uttar Pradesh Power Corp, Axis Bank, Lucknow Municipal Corp, and ICICI Bank were traded today.

Investors are also cautious as liquidity deficit has increased further. Liquidity in the banking system is currently estimated to be in a deficit of over 628.36 bln rupees, as against 138.88 bln rupees on Friday.

The liquidity deficit has widened further on account of outflows for goods and service tax payments. The liquidity will tighten further due to higher credit demand and increase in currency in circulation during the festival season, market participants said.

On Thursday, India Infradebt has invited bids for bonds maturing in 10 years. The state-owned company plans to raise up to 10 bln rupees. Udaipur Cement Works aims to raise 3.5 bln rupees through March 2025 bonds.

Sundaram Finance plans to raise 5 bln rupees through bonds maturing in five years, and JM Financial Products aims to raise up to 2 bln rupees through April 2025 bonds.

IKF Finance plans to raise 1.4 bln rupees through bonds maturing in April 2028, and Cholamandalam Investment and Finance Co aims to borrow up to 250 mln rupees through perpetual bonds. Biddings for all four bond offerings are scheduled on Thursday.

Today, deals aggregating 11.69 bln rupees were recorded on the National Stock Exchange against 32.21 bln rupees on Friday. BSE clocked deals worth 10.51 bln rupees, compared with 20.52 bln rupees on Friday.

UDAY BONDS

In the secondary market, Telangana's 2031 Ujwal DISCOM Assurance Yojana bonds aggregating 10 mln rupees were traded at a weighted average yield of 7.81%, data from RBI's Negotiated Dealing System – Order Matching System showed.

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

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 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Informist, Tuesday, Oct 25, 2022

By Subhana Shaikh

MUMBAI – Yields on corporate bonds ended on a steady note in the secondary market today amid low trade volume as investors refrained from placing large bets due to a truncated week, dealers said.

Domestic financial markets were closed Monday on account of Diwali and will be closed again on Wednesday.

"There was little activity on the secondary side of the corporate bond market with minimal investor participation," a dealer with a mid-sized brokerage said. "Brokerages and treasuries also closed early today because of festive season as mostly people are in holiday mode."

A few fund houses, insurance companies, and brokerage houses were active in the secondary market but in small quantum, which kept yields steady, dealers said.

Bonds issued by Bank of India, REC, Indian Railway Finance Corp, Andhra Pradesh State Beverages Corp, Uttar Pradesh Power Corp, Axis Bank, Lucknow Municipal Corp, and ICICI Bank were traded today.

Investors are also cautious as liquidity deficit has increased further. Liquidity in the banking system is currently estimated to be in a deficit of over 628.36 bln rupees, as against 138.88 bln rupees on Friday.

The liquidity deficit has widened further on account of outflows for goods and service tax payments. The liquidity will tighten further due to higher credit demand and increase in currency in circulation during the festival season, market participants said.

On Thursday, India Infradebt has invited bids for bonds maturing in 10 years. The state-owned company plans to raise up to 10 bln rupees. Udaipur Cement Works aims to raise 3.5 bln rupees through March 2025 bonds.

Sundaram Finance plans to raise 5 bln rupees through bonds maturing in five years, and JM Financial Products aims to raise up to 2 bln rupees through April 2025 bonds.

IKF Finance plans to raise 1.4 bln rupees through bonds maturing in April 2028, and Cholamandalam Investment and Finance Co aims to borrow up to 250 mln rupees through perpetual bonds. Biddings for all four bond offerings are scheduled on Thursday.

Today, deals aggregating 11.69 bln rupees were recorded on the National Stock Exchange against 32.21 bln rupees on Friday. BSE clocked deals worth 10.51 bln rupees, compared with 20.52 bln rupees on Friday.

UDAY BONDS

In the secondary market, Telangana's 2031 Ujwal DISCOM Assurance Yojana bonds aggregating 10 mln rupees were traded at a weighted average yield of 7.81%, data from RBI's Negotiated Dealing System – Order Matching System showed.

BENCHMARK LEVELS FOR CORPORATE BONDS:

End

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 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.