Indian shares, 10-year yields gain after budget

(Reuters) - Indian shares ended higher on Friday, after the government announced higher rural spending as well as tax exemptions in its last budget before the general elections due by May.

The benchmark BSE Sensex closed up 0.59 percent at 36,469.43, recording a weekly gain of 1.23 percent.

The broader NSE Nifty ended 0.58 percent higher at 10,893.65, gaining 1.05 percent for the week.

The 10-year benchmark government bond yield rose to 7.62 percent, having risen as much as 16 basis points from 7.49 percent pre-budget, while the rupee was weaker at 71.28 to the dollar, compared to the pre-budget level of 71.18.

The Nifty Auto index surged 2.7 percent with Hero MotoCorp and Maruti Suzuki Ltd rising 7.39 percent and 4.84 percent, respectively.

However, state-run lenders including State Bank of India Ltd, which reported its quarterly results earlier in the session, closed 3.15 percent lower, while Punjab National Bank declined 4.65 percent.

(Reporting by Arnab Paul in BENGALURU; Editing by Subhranshu Sahu)