Informist, Friday, Jan 28, 2022
By Sanjana Raina
NEW DELHI – Yields on corporate bonds in the secondary market remained in a thin band today as most market participants avoided placing large bets ahead of the Union Budget for 2022-23 (Apr-Mar) on Tuesday, dealers said.
Investors are waiting for the fiscal deficit target and the gross borrowing target for the next financial year.
"Nobody wants to go heavy into the Budget," said the head of fixed income at a mutual fund house. "We are more concerned with fiscal deficit and borrowing numbers."
According to a poll by Informist, the fiscal deficit target is likely to be set at 6.2% of GDP, and the gross market borrowing may be pegged at 12.8 trln rupees.
In the secondary market, papers issued by Housing Development Finance Corp, National Bank for Agriculture and Rural Development, Torrent Power, Housing and Urban Development Corp, LIC Housing Finance, National Highways Authority of India, and Indian Railway Finance Corp were in demand.
"Not much is happening at the moment because mostly people are waiting for the Budget," said a dealer with an insurance company.
Next week, IDFC First Bank will tap the primary market with tier-II bonds and plans to raise up to 15 bln rupees.
Today, deals aggregating 43.77 bln rupees were reported on the National Stock Exchange, as against 44.75 bln rupees on Thursday. BSE recorded deals worth 26.52 bln rupees, compared with 27.62 bln rupees in the previous session.
UDAY BONDS
In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating 129.50 mln rupees were traded at a weighted average yield of 7.14-7.41%, data from the RBI's Negotiated Dealing System – Order Matching System showed.
* 97 mln rupees of Uttar Pradesh's 2030 bonds were traded at 7.41%
* 32.5 mln rupees of Tamil Nadu's 2028-29 bonds were traded at 7.14-7.31%
BENCHMARK LEVELS FOR CORPORATE BONDS:
TENURES | TODAY | THURSDAY |
Three-year | 5.81-5.84% | 5.80-5.82% |
Five-year | 6.01-6.03% | 6.00-6.02% |
10-year | 7.13-7.16% | 7.12-7.15% |
End
Edited by Avishek Dutta
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