Indian FX/debt factors to watch - Nov 2

Fri Nov 2, 2012 8:32am IST

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GLOBAL MARKETS ROUNDUP
    * Asian shares rose on Friday as investor risk appetite
returned after overnight data suggested some stabilisation in
the global recovery trend, particularly in the world's top two
economies, the United States and China. 
    * The yen sagged to a near four month-low on Friday, while
commodity currencies held solid gains as investors bet on an
upbeat U.S. payrolls report after private employers added jobs
at the fastest pace in eight months. 
    * Brent crude prices fell on Thursday on returning North Sea
supply and euro-zone concerns, while U.S. gasoline edged higher
as support from supply disruptions after super storm Sandy
countered any pressure from data showing rising inventories.
 
    * U.S. Treasury debt prices fell on Thursday, while stocks
rose as data on Chinese manufacturing and U.S. private sector
employment bolstered the outlook for global economic growth and
undercut demand for safe-haven U.S. government debt. 

    LOCAL MARKETS CLOSE ON NOV.1
    * BSE index 18,561.70 points (+0.3 pct)  
    * NSE index 5,645.05 points (+0.45 pct) 
    * Rupee 53.695/715 per dollar (53.80/81) 
    * 10-year bond yield 8.19 pct (8.21 pct) 
    * 5-year OIS rate 7.09 pct (7.09 pct) 
    * 1-year OIS rate 7.75 pct (7.75 pct) 
    * Call money 8.00/8.05 pct (8.10/8.15 pct) 
    
    OVERNIGHT NEWS
    * Asia's large economies started to pick up steam last month
after a year of slower growth, surveys showed on Thursday, while
U.S. manufacturing showed modest improvement. 
    *  Hyundai Motor Co's Indian unit will invest
$300 million in a new engine plant and metal pressing shop, the
company said on Thursday, to expand in the country's
fast-growing diesel car segment. 
    * Reliance Industries Ltd has cut its estimate of
gas reserves in the D6 block off India's east coast by about
two-thirds to 3.4 trillion cubic feet (tcf), the oil ministry
said, hurting plans for the country to reduce its gas imports.
 
    * India has decided not to raise the price it will pay to
buy wheat from local farmers for the first time in decades, a
government source said on Thursday, as it grapples with bulging
stocks and seeks to cut its high food subsidy bill.
 
    * A panel of Indian ministers said telecom operators
fighting the withdrawal by government of high quality airwaves
will be allowed to keep some of their spectrum holdings,
according to a government official.  
         
    KEY FACTORS/EVENTS TO WATCH
    * South Korean Finance Minister Bahk Jae-wan meets his
Indian counterpart Chidambaram at the Shilla Hotel in Seoul for
the third annual finance ministers meeting between the two
countries. (0700 GMT)
    * India to release forex reserves, bank lending data. (1130
GMT)
                
    MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS
    * Videocon D2H, the satellite TV broadcast services arm of
Videocon Group, plans to raise between $150m and $200m through
an initial public offering of shares. Enam Securities, ICICI
Securities and UBS are mandated on the sale, Reuters reported.
(IFR)
    * Mahindra and Mahindra Financial Services has appointed
five bankers for its planned 9.25 billion rupee QIP. Citigroup,
Deutsche Bank, HSBC, JM Financial and Kotak Mahindra Capital are
the bookrunners. (IFR)
    * Ten banks sealed IDBI Bank's $250 million three-year loan
on Oct. 30. Signing took place by circulation. The 10 on the
deal are ANZ, BNP Paribas, Credit Agricole, DBS Bank, HSBC,
National Bank of Abu Dhabi, RBS, Standard Chartered, UOB and
Wells Fargo. Each took equal amounts. (IFR)
   * Nine banks have signed the $225 million two-year club loan
for Bank of Baroda. Signing was on Oct. 18. Coming in with equal
amounts are: ANZ, Bank of America Merrill Lynch, Barclays, BNP
Paribas, Citigroup, Credit Agricole, HSBC, Standard Chartered
and UOB. (IFR)

    USD/INR NDFs (NY closing prices) 
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume
    53.95-98     54.06     54.09    53.96     Mod
    
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Nov. 1*                   $62.31 mln#
    Month-to-date**           $49.88 bln 
    Year-to-date**            $18.08 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Nov. 1 on SEBI
website.
    #(As per Reuters conversion, $1 = 53.76 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Oct. 31               -$23.23  mln
    Month-to-date         -$23.23  bln
    Year-to-date            $6.25  bln                    
    * Source: Data as per custodial filing as on Nov.1 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Nov. 1
    Foreign Banks                        3.61 bln
    Public Sector Banks                 -0.58 bln
    Private Sector Banks                 2.42 bln
    Mutual Funds                         1.00 bln 
    Others                              -2.70 bln
    Primary Dealers                     -3.75 bln
    Source: Clearing Corp of India Ltd
    
    LIQUIDITY, as of Nov.1
    * The Reserve Bank of India accepted all 29 bids received
for 741.25 billion rupees at its one-day repo on Thursday,
through which it injects liquidity into the banking system. It
said it did not receive any bids at its reverse repo auction,
through which it absorbs excess liquidity from the banking
system. 
    * Indian banks' refinancing with RBI stays at 184.51 billion
rupees. 
    * Indian banks' cash balances with RBI fall to 3.15 trillion
rupees. 



 (Compiled by Subhadip Sircar)
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