The benchmark BSE index ended down 0.42 percent and the broader NSE index closed 0.63 percent lower, retreating further from record highs hit at the start of the week, on worries U.S. interest rates would rise sooner than expected and dent the appeal of higher-yielding emerging markets.
India’s benchmark 10-year bond yield 4 basis points higher at 8.82 percent, tracking rise in U.S. yields after Fed chief Janet Yellen hinted at earlier-than-expected rate hikes.
The Indian rupee ended at 61.34/35 versus its previous close of 60.95/96, as emerging market assets wilted on worries the U.S. Federal Reserve would raise interest rates sooner than expected, although the currency recovered some losses on dollar sales by exporters.
The benchmark five-year swap rate ended 6 bps higher at 8.50 percent, while the one-year rate closed up 3 bps at 8.64 percent.
India’s cash rate ended little changed at 8.95/9.00 percent versus its Wednesday close of 9.00/9.10 percent.
---------------------- Double click on codes in Reuters MIOR/MIBOR NSE MIBID/MIBOR Reuters Corporate Bond Yield/Spread For Reuters Benchmarks (Compiled by Dipika Lalwani)