Informist, Wednesday, Dec 1, 2021
By Aayushi Parekh and Sanjana Raina
MUMBAI – Yields on corporate bonds across maturities inched up by 2-3 basis points today, due to concern about the impact of the Omicron variant of coronavirus on the economy, dealers said.
“The market fluctuated last week because of the Omicron variant,” a dealer said. “But market participants are starting to believe that the impact of it will not be too severe. Hence, they are starting to sell their positions slowly.”
In the secondary market, participants such as mutual funds and insurance companies were seen to be active.
Papers issued by ICICI Bank, LIC Housing Finance, Housing Development Finance Corp, Reliance Industries, Shriram Transport Finance Co, Goswami Infratech Pvt Ltd, Punjab National Bank, National Highways Authority of India and National Bank For Agriculture And Rural Development were traded the most today.
Most market participants, however, are on the sidelines till the Reserve Bank of India’s policy review meeting, as some expect a reverse repo hike, the dealer said.
As of 1500 IST, trade volumes reported on the National Stock Exchange today aggregated 38.36 bln rupees, against 36.93 bln rupees on Tuesday.
According to merchant bankers, the primary market will dry out before the central bank’s policy meeting, which is to be held on Dec 6-8.
Today, deals aggregating 56.96 bln rupees were reported on the NSE, against 61.76 bln rupees on Tuesday. The BSE recorded deals worth 22.7 bln rupees compared with 40.84 bln rupees in the previous session.
UDAY BONDS
In the secondary market, Rajasthan’s Ujjwal DISCOM Assurance Yojana bond, aggregating to 250 mln rupees, was traded at a weighted average yield of 3.80%, data from the RBI’s Negotiated Dealing System – Order Matching System showed.
BENCHMARK LEVELS FOR CORPORATE BONDS:
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Edited by Pranav S. Joshi
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