Bonds, rupee fall over mixed exit polls for PM Modi, rise in oil prices

The rupee fell to 71.41 to the dollar, weakest since November 20 and down from Friday's close of 70.80, while the 10-year benchmark bond yield rose to 7.50 percent from 7.46 percent.

A parking lot employee counts Indian rupee notes in New Delhi on December 15, 2011. The Indian rupee continued its downward spiral against the US dollar on Thursday, hitting another record low due to concerns over the eurozone debt crisis and weak domestic data. The Indian unit -- Asia's worst performing currency this year -- fell to a low of 54.3 to the dollar, extending a slide that has seen it lose more than 20 percent of its value against the greenback in 2011.SAJJAD HUSSAIN/AFP/Getty Images

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 November 20 and down from Friday's close of 70.80, while the 10-year benchmark bond yield rose to 7.50 percent from 7.46 percent.

Singapore Nifty futures were also down 1.30 percent, 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)."