Indian FX/debt factors to watch - Nov 1

Thu Nov 1, 2012 8:13am IST

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GLOBAL MARKETS ROUNDUP
    * Asian shares fell on Thursday as China's official
manufacturing PMI, while confirming a trend toward recovering
growth, lacked the punch to convince investors that the slowdown
was bottoming out. 
    * The euro and commodity currencies got off to a steadier
start on Thursday following a choppy session overnight that saw
Wall Street end flat after a two-day closure due to Hurricane
Sandy. 
    * U.S. gasoline futures prices rose on Wednesday on concerns
about East Coast supply shortages as the energy sector struggled
to restore operations disrupted by massive storm Sandy. 
    * U.S. Treasury debt prices rose on Wednesday on month-end
extension trading as markets resumed operation following a huge
storm in the U.S. Northeast that shut the bond market for a day
and a half. 

    LOCAL MARKETS CLOSE ON OCT. 31
    * BSE index 18,505.38 points (+0.4 pct)  
    * NSE index 5,619.70 points (+0.39 pct) 
    * Rupee 53.80/81 per dollar (53.96/97) 
    * 10-year bond yield 8.21 pct (8.18 pct) 
    * 5-year OIS rate 7.09 pct (7.05 pct) 
    * 1-year OIS rate 7.75 pct (7.70 pct) 
    * Call money 8.10/8.15 pct (8.0/8.10 pct) 
    
    OVERNIGHT NEWS
    * Indian banks' advances and deposits grew at a slower pace
so far this fiscal year that started in April, compared with the
similar period last year, as a sluggish economy dampened demand
for credit. 
     * India's infrastructure sector output grew
5.1 percent in September from a year earlier, higher than an
upwardly revised annual growth of 2.3 percent in the previous
month, government data showed on Wednesday. 
    * The Reserve Bank of India is considering cutting the
held-to-maturity (HTM) ceiling, Deputy Governor Anand Sinha said
on Wednesday, referring to a category of debt that banks must
hold until redemption but which can be reshuffled once a year.
 
    
    KEY FACTORS/EVENTS TO WATCH
    * India October auto sales data.
    *  India PMI data at 0530GMT.  
              
    MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS
    *  The satellite TV broadcast services arm of India's
Videocon Group plans to raise between $150 million and $200
million through an initial public offering of shares, four
sources with direct knowledge of the matter said.
 
    * Fidelity Growth Partners, the private equity arm of
Fidelity Worldwide Investment, has invested $75 million in
Indian medical equipment supplier Trivitron Healthcare, both the
companies said in a statement. 
   * State-run Bharat Petroleum Corp is likely to increase its
two-tranche loan above the original target of US$600m after
receiving commitments totalling US$1.35bn. (IFR)
   * Several pieces of Bharti Airtel's US$7.5bn multi-tranche
loan from March 2010 are on offer in the secondary market.
The deal consists of tranches due in June 2013, June 2014, June
2015 and June 2016, paying margins of 140bp over Libor, 160bp,
175bp and 195bp, respectively. Some sellers are offering up to
US$30m of each tranche, while some are offering up to US$20m.
(IFR)
   * Two pieces of IDBI Bank's US$250m three-year loan mandated
in September are also on offer in the secondary market, Basis
Point reported. (IFR)
 
    USD/INR NDFs (NY closing prices) 
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume
    54.12-16     54.19     54.19    54.08     Mod
    
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Oct. 31*                 $46.10 mln#
    Month-to-date**           $2.18 bln 
    Year-to-date**           $18.03 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Oct. 31 on
SEBI website.
    #(As per Reuters conversion, $1 = 53.795 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Oct. 30                $85.74  mln
    Month-to-date           $1.47  bln
    Year-to-date            $6.27  bln                    
    * Source: Data as per custodial filing as on Oct. 31 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Oct. 31
    Foreign Banks                      -15.46 bln
    Public Sector Banks                 23.28 bln
    Private Sector Banks                 4.03 bln
    Mutual Funds                        -9.70 bln 
    Others                               3.53 bln
    Primary Dealers                     -5.67 bln
    Source: Clearing Corp of India Ltd
    
    LIQUIDITY, as of Oct. 31
    * The Reserve Bank of India accepted all 40 bids received
for 961.60 billion rupees at its one-day repo on Wednesday,
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 rises to 184.5 billion
rupees. 
    * Indian banks' cash balances with RBI rise to 3.2 trillion
rupees. 



 (Compiled by Subhadip Sircar)
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