Indian shares edge up, with the NSE index up 1.61 percent, on the back of strong foreign fund buying and as the U.S. Federal Reserve maintained language suggesting that rate hikes would not happen for a “considerable time”.
The benchmark 10-year bond yield down 3 basis points at 8.47 percent, as traders say Fed’s decision to leave U.S. rates low for “a considerable time” was expected but the clarity is now leading to some rally. Foreign fund buying further aiding debt prices.
The partially convertible rupee stronger at 60.94/95 per dollar, tracking strength in domestic stocks. The rupee had closed at 60.92/93, on Wednesday.
The benchmark 5-year swap rate down 4 basis points at 7.90 percent and the one-year rate flat at 8.43 percent.
India’s cash rate higher at 8.15/8.20 percent against the previous close of 7.95/8.00 percent. (1 US dollar = 61.1300 Indian rupee) (Compiled by Dipika Lalwani)