The benchmark BSE index and the broader NSE index both ended down 0.03, after hitting record highs for a second consecutive session as momentum waned ahead of the expiry of monthly derivative contracts and on expectations that current levels sufficiently price in fundamentals.
Indian government bonds rose, fuelled by relief over the strong demand seen for state bonds earlier in the day, but broader gains were capped as investors braced for the federal debt auction later in the week. The benchmark 10-year bond yield ended down 1 basis point at 8.85 percent, 4 bps off its intraday high of 8.89 percent.
The Indian rupee ended weaker at 60.76/77 versus its previous close of 60.59/60, as continued dollar demand from oil importers and weaker regional currencies kept it under pressure.
The benchmark five-year rate ended unchanged at 8.46 percent and the one-year closed 1 basis point higher at 8.59 percent.
India’s cash rate ended at 8.00/8.10 percent after rising to the day’s high of 8.80 percent. It had touched a high of 9.15 percent on Monday, its highest since March 28.
---------------------- Double click on codes in Reuters MIOR/MIBOR NSE MIBID/MIBOR Reuters Corporate Bond Yield/Spread For Reuters Benchmarks (Compiled by Dipika Lalwani)