Bonds, rupee gain after Gujarat exit poll results

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.