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Wednesday, February 1, 2023

India Corporate Bonds: Yields flat; primary market activity subdued

Informist, Thursday, Dec 29, 2022

 

By Parth Singh

 

NEW DELHI – Yields on corporate bonds ended flat today amid subdued trade volume as investors preferred to remain on the sidelines in the absence of fresh domestic cues, dealers said.

 

“There’s nothing going on apart from routine (trading) in the market, and there are also no major issuances to look forward to,” a debt-dealer said.

 

Several market participants are on leave in the last week of the calendar year, which has kept the activity in the corporate bond market limited to requirement-based trading for the week.

 

In the secondary market today, insurance companies were said to be active on the buying side whereas mutual funds remained on the selling side to meet their quarter end redemption requirements, dealers said.

 

Bonds issued by Power Finance Corp, Reliance industries, LIC Housing Finance, Larsen and Toubro, Aditya Birla Finance, Thane Creek Bridge Infrastructure, and IFCI Ltd were traded the most across tenures.

 

Volume in the secondary market remained steady. Deals aggregating 56 bln rupees were recorded on the National Stock Exchange as against 57.67 bln rupees on Wednesday. BSE clocked deals worth 34 bln rupees against 28.92 bln rupees on Wednesday.

 

Activity in the primary market was also quite dry today due to lack of big-ticket issuances owing to the ongoing holiday season.

 

Non-banking financial company, Indostar Capital Finance Ltd allotted five non-convertible debentures worth up to 4 bln rupees at a coupon of 9.95%. 

 

UDAY BONDS

In the secondary market, no Ujwal DISCOM Assurance Yojana bonds were traded, data from the RBI’s Negotiated Dealing System – Order Matching System showed.

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

TENURES

TODAY

WEDNESDAY

Three-year

7.57-7.60%7.58-7.61%

Five-year

7.55-7.60%7.55-7.60%

10-year

7.57-7.63%7.55-7.62%

 

End

 

Edited by Maheswaran Parameswaran

 

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 Media Pvt. Ltd. 2022. All rights reserved.

Source: Cogencis

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