Bonds, rupee gain after Gujarat exit poll results

MUMBAI - The rupee strengthened while bond yields inched lower on Friday morning after exit polls showed the country’s ruling alliance would win elections in the prime minister’s home state but caution remained ahead of the actual results.

The benchmark 10-year bond yield was down 1 basis point at 7.12 percent by 0357 GMT, while the partially convertible rupee was at 64.15 per dollar, compared with its previous close of 64.34.

Indian Prime Minister Narendra Modi’s ruling group will sweep an election in his home state of Gujarat, surveys showed on Thursday, shaking off the most serious challenge yet from a combined opposition.

Reporting by Mumbai Desk; Editing by Subhranshu Sahu