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What is the story about?
The corporate bond market is witnessing a short-term slowdown in issuances, though significant fundraising activity is lined up for the coming days. After a robust Thursday (December 18) with issuances amounting to ₹43 billion, the market saw a sharp decline to ₹9.2 billion on Friday (December 19). The trend is expected to continue on Monday (December 22) with projected issuances of ₹11.25 billion.
Monday's primary market activity is expected to be led by a few key players. Phoenix Arc is set to raise ₹3 billion through four bonds, while Spandana Spoorthy has planned an issuance of ₹4.25 billion via three bonds. Additionally, a reissue of ₹2.5 billion is anticipated from Krazybee Services, rounding out the day's corporate fundraising.
However, the market is poised for a significant uptick on Tuesday, December 23, with Power Finance Corp (PFC) and Bank of India (BoI) planning a combined fundraise of approximately ₹160 billion. Bank of India is slated for a substantial ₹100 billion issuance, marking a major event for the market. PFC is also looking to raise ₹60 billion through two separate bonds.
Also Read | India’s bond market set for steady growth over next five years: ABSL AMC’s Balasubramanian
Market observers note a slight upward bias, which is typical towards the year-end. Trading volumes have been particularly concentrated in bonds with a two to three-year tenure. In another interesting trend, mutual funds have been observed selling bonds with a one to two-year maturity. This selling is reportedly driven by redemption pressures, likely in anticipation of upcoming Goods and Services Tax (GST) payments.
On the bourses, including the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), several papers have seen active trading. Issuances from Telangana State Industrial Infrastructure Corp and Andhra Pradesh State Beverages Corp were among the most traded. Other companies that saw healthy activity in their bonds include Bajaj Housing Finance, Tata Motors Finance, IIFL Finance, Navi Finserv, Capri Global, NABARD, Muthoot Fincorp, and UGRO Capital.
Catch all the latest updates from the stock market here
Monday's primary market activity is expected to be led by a few key players. Phoenix Arc is set to raise ₹3 billion through four bonds, while Spandana Spoorthy has planned an issuance of ₹4.25 billion via three bonds. Additionally, a reissue of ₹2.5 billion is anticipated from Krazybee Services, rounding out the day's corporate fundraising.
However, the market is poised for a significant uptick on Tuesday, December 23, with Power Finance Corp (PFC) and Bank of India (BoI) planning a combined fundraise of approximately ₹160 billion. Bank of India is slated for a substantial ₹100 billion issuance, marking a major event for the market. PFC is also looking to raise ₹60 billion through two separate bonds.
Also Read | India’s bond market set for steady growth over next five years: ABSL AMC’s Balasubramanian
Market observers note a slight upward bias, which is typical towards the year-end. Trading volumes have been particularly concentrated in bonds with a two to three-year tenure. In another interesting trend, mutual funds have been observed selling bonds with a one to two-year maturity. This selling is reportedly driven by redemption pressures, likely in anticipation of upcoming Goods and Services Tax (GST) payments.
On the bourses, including the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), several papers have seen active trading. Issuances from Telangana State Industrial Infrastructure Corp and Andhra Pradesh State Beverages Corp were among the most traded. Other companies that saw healthy activity in their bonds include Bajaj Housing Finance, Tata Motors Finance, IIFL Finance, Navi Finserv, Capri Global, NABARD, Muthoot Fincorp, and UGRO Capital.
Catch all the latest updates from the stock market here
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