Media reports suggest that the number of manufacturing companies issuing bonds in the local market may rise in the coming days.
Industry sources feel that companies are waiting for yields on corporate bonds to soften further from the current levels, before they come to the market.
Yields on corporate bonds have not softened substantially after RBI cut key rates, as liquidity in the system continues to be tight and money market dealers await bunched-up redemptions of certificate of deposits in February-March.
The fall in yields on bonds would make it a cheaper source of finance for Indian companies than bank loan, reports indicate.
However, the difference in interest rate between bank loan and bonds is expected to decline as banks are reducing their lending rates following the RBI policy outcome.
In the calendar year 2012-13, manufacturing companies raised Rs 66,000 crore from the debt market, the highest they have raised from Indian debt capital markets. Some of the prominent issuers were NHPC, Hindalco, Ranbaxy and Tata Steel.
Meanwhile sources indicate that Lafarge India, the Indian subsidiary of French cement manufacturing major, plans to issue Rs 500 crore worth bonds in the domestic market.