The benchmark BSE index ended up 0.52 percent and the broader NSE index closed 0.37 percent higher, after hitting record highs for a third session in a row as infrastructure companies such as Larsen & Toubro extended recent gains while lenders including Yes Bank advanced on hopes the worst was over in terms of asset quality deterioration.
The benchmark 10-year bond yield ended flat at 8.85 percent with caution prevailing ahead of the 160 billion rupee ($2.63 billion) debt auction later this week, while easing liquidity conditions pushed overnight rates lower.
The Indian rupee weakened for a third consecutive session on Wednesday, falling below the 61 to the dollar mark for the first time in more than a month, hurt by good demand for the greenback from importers and by continued weakness in Asian currencies.
The partially convertible rupee closed at 61.07/08 per dollar compared with its close of 60.76/77 on Tuesday.
The benchmark five-year rate ended 3 bps lower at 8.40 percent, while the one-year rate ended 1 bp higher at 8.60 percent.
India’s cash rate ended lower at 7.10/7.15 percent against Tuesday’s close of 8.00/8.10 percent.
---------------------- Double click on codes in Reuters MIOR/MIBOR NSE MIBID/MIBOR Reuters Corporate Bond Yield/Spread For Reuters Benchmarks (Compiled by Dipika Lalwani)