Indian bonds and currency markets weakened on Monday after exit polls showed mixed results for Prime Minister Narendra Modi’s ruling party at the recently held crucial state elections, and on higher oil prices after OPEC members and allies agreed to reduce output on Friday.
The rupee fell to 71.41 to the dollar, weakest since Nov. 20 and down from Friday’s close of 70.80, while the 10-year benchmark bond yield rose to 7.50% from 7.46%.
Singapore Nifty futures were also down 1.30%, indicating a weak opening for Indian stock markets.
“The exit polls are mixed, but we don’t want to take any risk before actual results are out given that oil is also up,” said a trader at a foreign bank.
“Sentiment will remain cautious until state election results are out (on Tuesday).”