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India Corporate Bonds: Yields steady; primary market supply eyed Tue

Informist, Monday, May 30, 2022

 

By Sanjana Raina 

 

NEW DELHI – Yields on corporate bonds in the secondary market remained steady across maturities today amid tepid trade volumes, as most investors awaited the fresh primary market supply lined up for Tuesday, dealers said.

 

In the primary market bonds worth at least 127.5 bln rupees are lined up for sale on Tuesday. 

 

Bajaj Finance plans to raise up to 50 bln rupees through the issuance of partly paid unsecured bonds maturing in 13 years. 

 

Tata Capital Financial Services plans to raise up to 7.5 bln rupees through two bonds with different maturities.

 

Separately, Housing Development Finance Corp Ltd and Export-Import Bank of India plans to raise up to 50 bln rupees, and 20 bln rupees, respectively through bonds maturing in Jun 2025. 

 

In the secondary market of corporate bonds, mainly mutual funds were said to have been active. 

 

Bonds issued by SIDBI, Housing Development Finance Corp, Bajaj Housing Finance, LIC Housing Finance, Tata Capital Housing Finance, Kotak Mahindra Prime, State Bank of India, Bajaj Finance and Indian Railway Finance Corp were traded the most today.

 

"Corporate bond market has been quite steady, not much activity is there. Demand-supply dynamics are largely playing out," a dealer with mid-sized brokerage firm said. 

 

On the data front, investors will keep an eye on India's GDP growth data for Jan-Mar, scheduled to be released after market hours on Tuesday.

 

India's GDP growth is likely to have moderated to 4.1% in the March quarter, according to the median of 22 economists polled by Informist, lower than the 4.8% assumed by the National Statistical Office in its second advance estimate.

 

Today, deals aggregating 31.3 bln rupees were recorded on the National Stock Exchange, compared with 40.47 bln rupees on Friday. BSE clocked deals worth 19.99 bln rupees, compared with 27.92 bln rupees the previous day.

 

UDAY BONDS

In the secondary market, Ujwal DISCOM Assurance Yojana bonds aggregating 686.70 mln rupees were traded at a weighted average yield of 4.56-7.82%, data from the RBI's Negotiated Dealing System – Order Matching System showed.

 

* 289.80 rupees of Harayana's 2023-2026 bonds were traded at 6.32-7.75%

* 289.30 mln rupees of Tamil Nadu's 2029-32 bonds were traded at 7.68-7.82%

* 50 mln rupees of Telangana's 2031 bond were traded at 7.68%

* 57.60 mln rupees of Rajasthan's 2022-2026 bonds were traded at 4.56-7.79%

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

TENURES

TODAY

FRIDAY

Three-year

7.20-7.26%7.18-7.25%

Five-year

7.32-7.28%7.35-7.37%

10-year

7.71-7.76%7.70-7.75%

 

End

 

Edited by Maheswaran Parameswaran

 

 

Cogencis news is now Informist. 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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