BSE Sensex falls after GDP data

The BSE Sensex extended losses, the 1-year swap rate fell, and bond prices held on to gains on Thursday after January-March growth fell to a much lower-than-expected 5.3%, raising expectations for interest rate cuts.

The Sensex slightly extended losses to 1.3% on the day. The 1-year swap rate fell 4 basis points to 7.85%. It was trading at 7.89% before the gross domestic product announcement.

The 10-year government bond yields fell 11 basis points on the day, with bond prices having gained ahead of the data on expectations for a weak number.

The rupee was holding steady at 56.42-56.45 to the dollar, after earlier hitting a record low at 56.52.

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