You have Post Office Savings Schemes, MIPs, NSCs, Bank deposits, Company Fixed deposits, Infrastructure Bonds, Bond Mutual Funds, Corporate Bonds, etc..
Your options are wide and each one vary in risk and return
The rising inflation over the past year saw the Reserve Bank of India (RBI) raising key interest rates 13 times between March 2010 and October 2011. The repo rate (the rate at which the RBI lends to banks) was raised to 8.50% in October 2011 from 4.75% in March 2010. During the corresponding period, the benchmark 10-year government bond yield also rose from 7.85% to 8.82%.
With inflation now showing some signs of easing, down to 6.55% in January 2012 from 10.88% in April 2010, there is an expectation that interest rates will decline too. CRISIL Centre for Economic Research (CCER) expects the RBI will start cutting the repo rate in Q1FY 13, and the 10-year government bond yield will be around 7.3% to 7.5% by March 2013 from level of 8.3% 
at the end of January 2012. This decline in interest rates would benefit Long Term Debt Funds which typically generate superior returns in a falling interest rate environment.
What is the relevance of Fixed Income Portfolio when the equity has started moving up?
You have to look at what asset combination is good for you depending on your risk appetite.
happy investing
