Indian FX/debt factors to watch - Oct 31

Wed Oct 31, 2012 8:32am IST

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GLOBAL MARKETS ROUNDUP
    * Asian shares rose and the yen was pressured on Wednesday,
as risk appetite recovered slightly after European equities and
the euro firmed overnight while U.S. financial markets looked
set to resume trading with the passage of a powerful storm. 
 
    * The yen drifted off a one-week high against the dollar on
Wednesday thanks to a general improvement in risk appetite,
paring gains made after the Bank of Japan balked at delivering
bolder action to kick-start growth. 
    * U.S. gasoline and heating oil futures slid on Tuesday,
pulling back from pre-Hurricane Sandy gains as several key East
Coast refineries and pipelines restored operations and traders
bet on an enormous hit to demand for fuel. 
    * The U.S. bond market will be open on Wednesday, following
the recommendations of an industry trade group. 

    LOCAL MARKETS CLOSE ON OCT. 30
    * BSE index 18,430.85 points (-1.1 pct)  
    * NSE index 5,597.90 points (-1.19 pct) 
    * Rupee 53.96/97 per dollar (54.08/09) 
    * 10-year bond yield 8.18 pct (8.13 pct) 
    * 5-year OIS rate 7.05 pct (6.99 pct) 
    * 1-year OIS rate 7.70 pct (7.58 pct) 
    * Call money 8.00/8.10 pct (8.0/8.05 pct) 
    
    OVERNIGHT NEWS
    * International Monetary Fund chief Christine Lagarde said
on Tuesday advanced economies must continue fiscal consolidation
to reduce debt long-term while emerging economies should loosen
up fiscal and monetary policy to salvage their slowing growth.
 
    * India's central bank left interest rates on hold on
Tuesday but cut the cash reserve ratio for banks, defying
pressure from the government to lower rates for the first time
since April but also indicating it may ease policy in early
2013. 
    
    KEY FACTORS/EVENTS TO WATCH
    * India will likely release infrastructure data covering
eight sectors for September.
    * The government will release the fiscal deficit data for
April-September. (1030GMT)
    * RBI to hold analyst conference call post policy. (0900GMT)
    * India to sell 100 billion rupees of treasury bills.
    * RBI to release money supply data.
            
    MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS
    * Suzlon Energy Ltd, the world's fifth-largest
wind-turbine maker, has formally been referred to the Corporate
Debt Restructuring cell, marking the beginning of an end to a
nearly three-year struggle of the company to refinance its
debts. (IFR)
    * Welspun Corp has completed an opportunistic
reverse tender offer for its 4.5 percent convertible bonds due
2014, taking nearly a third of the bonds out of circulation.
(IFR)
    * Sole bookrunner Axis Bank has closed a 4 billion
rupee ($74 million) dual tranche loan for Shree Naman Hotels.
The facility is split into a 3.5 billion rupee loan maturing in
December 2023 and saw participation from Axis Bank, Bank of
India and Central Bank of India. (IFR)
      
    USD/INR NDFs (NY closing prices) 
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume
    54.31-35     54.40     54.36    54.28      Low
    
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Oct. 30*                -$35.53 mln#
    Month-to-date**           $2.20 bln 
    Year-to-date**           $18.06 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Oct. 30 on
SEBI website.
    #(As per Reuters conversion, $1 = 54.04 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Oct. 29                $125.23 mln
    Month-to-date           $1.39  bln
    Year-to-date            $6.18  bln                    
    * Source: Data as per custodial filing as on Oct. 30 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Oct. 30
    Foreign Banks                      -21.74 bln
    Public Sector Banks                 33.95 bln
    Private Sector Banks                 5.31 bln
    Mutual Funds                         4.80 bln 
    Others                               3.84 bln
    Primary Dealers                    -26.17 bln
    Source: Clearing Corp of India Ltd
    
    INFLOWS
SDL 07.30%, 2012         Redemption Oct 31           2850.38 
(TAMIL NADU) 
SDL 07.33%, 2012         Redemption Oct 31           2073.30 
(GUJARAT) 
SDL 07.35%, 2012         Redemption Oct 31           1582.60 
(WEST BENGAL) 
For detailed table, see: 

    LIQUIDITY, as of Oct. 30
    * The Reserve Bank of India accepted all 29 bids received
for 774.75 billion rupees at its one-day repo on Tuesday,
through which it injects liquidity into the banking system. It
said it did not receive any bid at its reverse repo auction,
through which it absorbs excess liquidity from the banking
system. 
    * Indian banks' refinancing with RBI down to 175.22 billion
rupees. 
    * Indian banks' cash balances with RBI rise to 3.13 trillion
rupees. 

($1 = 54.0400 Indian rupees)

 (Compiled by Subhadip Sircar)
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