RBI is committed to bringing down retail inflation to eight per cent by January 2015 and six per cent by January 2016.

These schemes are expected to perform in the next 2-3 years.

To neutralise this, RBI has been doing forward swaps

According to experts, due to reduction in withholding tax, FIIs' investment in corporate bonds will pick up.

With the euphoria over the National Democratic Alliance's victory in the stock market continuing, the rupee is likely to touch 57 to the dollar soon.

Foreign institutional investors (FIIs) are set to pump in more funds in debt securities, as the next government under the Bharatiya Janata Party (BJP) is expected to be a stable one and is seen as growth-oriented by market participants.

The yield on the 10-year bond may fall to 8.70 per cent due to FII flows in debt.

Voting for the 2014 general elections will begin in April and it is expected Budget 2014-15 will be presented in June.

As on Monday, the prices of many vegetables had fallen as much as 50% compared with those a month before, due to increased supply, following the arrival of winter crops in the markets.

Repo rate may well end 2013 at 8 per cent, where it had begun the year.