Indian rupee and bonds rallied on Thursday after early vote count suggested the ruling party led National Democratic Alliance was leading in several seats across the country raising possibility of a second term for the Narendra Modi government.

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Exit polls have predicted a clear win for Prime Minister Modi in the election that ended on Sunday, but such polls in India have proved misleading before.

The ruling coalition, led by Modi`s Bharatiya Janata Party (BJP), is projected to win between 339 and 365 seats in the 545-member lower house of parliament with a Congress-led opposition alliance getting only 77 to 108, an exit poll from India Today-Axis showed.

The benchmark 10-year bond yield was 3 basis points lower at 7.23% at 0349 GMT.

The partially convertible rupee was trading at 69.54 per dollar versus previous close of 69.6750. The Nifty share index was up 1.4%.