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Friday, January 27, 2023

India Corporate Bonds: Yields remain steady ahead of year-end

Informist, Friday, Dec 30, 2022

 

By Parth Singh

 

NEW DELHI – Activity in the secondary market of corporate bonds remained subdued today, keeping yields steady as market participants refrained from placing large bets ahead of the end of the year, dealers said.

 

“Activity in the market is almost dead right now. It’s too early to take a call on what will come next week as everyone is on leave,” a dealer said.

 

Today, investor participation also remained low with foreign institutional investors and bankers on holiday ahead of the New Year, which resulted in subdued trade volumes. 

 

Volume in the secondary market remained lacklustre. Deals aggregating 23 bln rupees were recorded on the National Stock Exchange, against 56 bln rupees on Thursday. BSE clocked deals worth 15.65 bln rupees against 34 bln rupees on Thursday.

 

In the secondary market today, insurance companies and mutual funds were said to be active for requirement-based trading, dealers said. Mutual funds have largely been active on the selling side this week to meet their redemption requirements for the quarter and the end of the year.

 

Bonds issued by Kotak Mahindra Prime, Power Finance Corp, Aditya Birla Finance, Tata Int, Mahanagar Telephone Nigam, and Nuclear Power Corp of India were traded the most across tenures.

 

Activity in the primary market was also thin as there were no significant cues for investors due to the ongoing holiday season. However, merchant bankers said some public sector entities would start tapping the bond market in the first week of 2023.

 

“Last quarter is usually a bond-heavy quarter, so we expect many PSUs to tap the market for their funding requirement,” a senior treasury official said. 

 

UDAY BONDS

In the secondary market, Haryana’s 2024 Ujwal DISCOM Assurance Yojana bonds aggregating 0.43 mln rupees were traded at a weighted average yield of 7.36%, data from the RBI’s Negotiated Dealing System – Order Matching System showed.

 

BENCHMARK LEVELS FOR CORPORATE BONDS:

TENURES

TODAY

THURSDAY

Three-year

7.55-7.60%7.57-7.60%

Five-year

7.55-7.60%7.55-7.60%

10-year

7.60-7.65%7.57-7.63%

 

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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Source: Cogencis

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