Indian FX/debt factors to watch - Nov 5

Mon Nov 5, 2012 8:31am IST

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GLOBAL MARKETS ROUNDUP
    * Asian shares fell on Monday, tracking a sell-off in global
shares late last week, as investors continued to shed risk ahead
of the closely fought U.S. presidential election and looked past
a strong U.S. jobs data to fragile economic growth
worldwide. 
    * The U.S. dollar hovered around two-month highs against a
basket of major currencies in Asia on Monday as investors sought
the safe-haven currency given uncertainty surrounding the U.S.
presidential election. 
    * Crude oil and gasoline futures fell more than 2 percent on
Friday after Washington issued a waiver allowing foreign tankers
to bring fuel to the East Coast from U.S. ports, holding out
some promise of relief from supply disruptions caused by
superstorm Sandy. 
    * Prices for long-dated U.S. Treasuries traded near flat on
Friday, paring losses after a strong jobs report, on uncertainty
about next week's presidential election. 

    LOCAL MARKETS CLOSE ON NOV.1
    * BSE index 18,755.45 points (+1.04 pct)  
    * NSE index 5,697.70 points (+0.93 pct) 
    * Rupee 53.8050/8150 per dollar (53.6950/7150)
    * 10-year bond yield 8.20 pct (8.19 pct) 
    * 5-year OIS rate 7.09 pct (7.09 pct) 
    * 1-year OIS rate 7.75 pct (7.75 pct) 
    * Call money 7.95/8.00 pct (8.00/8.05 pct) 
    
    OVERNIGHT NEWS
    * India's economy should expand by 5.5 percent to 6.0
percent this year and growth should then return to 7 percent
next year, Finance Minister P. Chidambaram told Reuters on
Sunday, and said inflation was at an "unacceptable level".
 
    * A high-profile tax dispute between the Indian government
and British telecoms operator Vodafone Group has made it
unlikely that India will sign a foreign investment protection
treaty with Canada during a visit this week by Prime Minister
Stephen Harper, Canada's top diplomat in India said on Sunday.
 
         
    KEY FACTORS/EVENTS TO WATCH
    * India's inter-ministerial panel will hold a two-day review
on coal block allocations to 31 state-run companies.
                   
    MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS
    * India's Rural Electrification Corp Ltd has
received bids of over 25 billion rupees ($465.03 million) for
its minimum 5 billion rupees bond sale, four sources with
knowledge of the deal said. 
    
    USD/INR NDFs (NY closing prices) 
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume
    54.20-25    54.05     54.25    54.06    Moderate
    
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Nov. 2*                   $71.04 mln#
    Month-to-date**          $127.31 mln 
    Year-to-date**            $18.16 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Nov. 2 on SEBI
website.
    #(As per Reuters conversion, $1 = 53.80 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Nov. 1                -$52.90  mln
    Month-to-date         -$76.13  mln
    Year-to-date            $6.19  bln                    
    * Source: Data as per custodial filing as on Nov. 2 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Nov. 2
    Foreign Banks                      -12.19 bln
    Public Sector Banks                  3.14 bln
    Private Sector Banks                -0.87 bln
    Mutual Funds                         8.36 bln 
    Others                               6.92 bln
    Primary Dealers                     -5.35 bln
    Source: Clearing Corp of India Ltd
    
    LIQUIDITY, as of Nov.2
    * The Reserve Bank of India accepted all 21 bids received
for 277.20 billion rupees at its three-day afternoon repo
auction on Friday, through which it injects liquidity into the
banking system. It said it also accepted both bids received for
450 million rupees at its three-day reverse repo auction,
through which it absorbs excess liquidity from the banking
system. 
    * Indian banks' refinancing with RBI rises to 189.77 billion
rupees. 
    * Indian banks' cash balances with RBI fall to 2.98 trillion
rupees. 

 (Compiled by Swati Bhat)
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