SNAPSHOT-India stocks, rupee, swaps, call at close

BY Reuters | ECONOMIC | 06/02/23 07:36 AM EDT

MUMBAI, June 2 (Reuters) - STOCKS: The benchmark BSE Sensex rose 118.57 points, or 0.19%, to 62,547.11, while the broader NSE index gained 46.35 points, or 0.25%, to 18,534.1 driven by a jump in Hero MotoCorp following strong monthly sales, while signs that the U.S. Federal Reserve could pause its interest rate hiking cycle underpinned investor sentiment.

RUPEE: The Indian rupee strengthened 0.12% versus the U.S. dollar, and quoted at 82.33 per dollar on the back of increased bets for a U.S. Federal Reserve rate pause, while persistent dollar inflows into stocks also aided. GOVERNMENT BONDS: Benchmark 10-year bond was quoted at 101.92 rupees, with yield flat at 6.9823%; vs previous close of 6.9824% after a debt auction added to supply.

OVERNIGHT INDEXED SWAPS: The one-year overnight indexed swap rate was down 1 bps at 6.52%, while the benchmark five-year swap rate fell 1 bps to 6.00%.

CALL MONEY/REPOS: India's overnight call money rate was down 50 bps at 5.80% against 6.30% in the previous session. The overnight TREPS rate was at 6.25%, compared with the previous day's weighted average of 6.2126%. (Reporting by Bhakti Tambe)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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