The benchmark BSE index ended 0.94 percent lower and the broader NSE index closed down 0.96 percent, as lenders such as State Bank of India and ICICI Bank slumped on worries that a sell-off in government bonds would hit the value of their debt holdings.
India’s new 10-year bond yield ended up 3 basis points at 8.64 percent, on fears that foreign investors would pare their portfolios given the worsening sentiment in global markets and after the central bank cut mandatory reserve holdings for lenders.
The existing 10-year benchmark bond yield closed 4 basis points higher to 8.87 percent.
The partially convertible rupee ended weaker at 61.4950/5050 per dollar versus Tuesday’s close of 60.8450/8550, posting its biggest single-day fall in six-and-half months as heavy dollar outflows from the domestic share and debt markets continued as foreign investors pared their holdings.
The benchmark five-year swap rate closed up 9 bps at 8.11 percent, while the one-year rate ended up 7 bps at 8.50 percent.
India’s cash rate ended higher at 8.95/9.00 percent against Tuesday’s close of 7.25/7.30 percent.
---------------------- Double click on codes in Reuters MIOR/MIBOR NSE MIBID/MIBOR Reuters Corporate Bond Yield/Spread For Reuters Benchmarks (Compiled by Dipika Lalwani)