Indian FX/debt factors to watch - Nov 6

Tue Nov 6, 2012 8:40am IST

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GLOBAL MARKETS ROUNDUP
    * Asian shares and the dollar steadied on Tuesday with
investors' risk appetite curbed by uncertainty over the outcome
of the tight U.S. presidential election and renewed doubts over
Greece's political ability to push through severe fiscal
reforms. 
    * The euro languished near a two-month low versus the dollar
on Tuesday, with its outlook clouded by uncertainty over a Greek
parliamentary vote on austerity steps needed for Athens to
secure international aid. 
    * Brent crude jumped nearly 2 percent on Monday, snapping a
string of five lower settlements as stronger U.S. gasoline
futures helped oil to rally while storm-ravaged areas of the
East Coast continued to grapple with the aftermath of Hurricane
Sandy. 
    * U.S. Treasuries prices rose on Monday as investors fretted
about Tuesday's U.S. presidential election and as strikes and
protests in Greece over yet more austerity measures clouded the
outlook for further bailout funds for the debt-laden
country. 

    LOCAL MARKETS CLOSE ON NOV. 5
    * BSE index 18,762.87 points (+0.04 pct)  
    * NSE index 5,704.20 points (+0.11 pct) 
    * Rupee 54.60/61 per dollar (53.8050/8150)
    * 10-year bond yield 8.19 pct (8.20 pct) 
    * 5-year OIS rate 7.09 pct (7.09 pct) 
    * 1-year OIS rate 7.75 pct (7.75 pct) 
    * Call money 8.05/8.10 pct (7.95/8.00 pct) 
    
    OVERNIGHT NEWS
    * India's central bank may ease monetary policy as early as
January, Governor Duvvuri Subbarao said on Monday, as price
pressures ease in Asia's third-largest economy in the first part
of next year on the back of slower growth. 
    * India has been left with no bidders for part of an
upcoming cellphone airwaves auction after Tata Teleservices
 became the second company to drop out of the
process. 
                   
    MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS
    * State-owned central transmission utility Power Grid Corp
of India has picked Barclays, Standard Chartered and
Royal Bank of Scotland for its planned benchmark US
dollar-denominated bond issue. The mandate is believed to have
come at a very low fee, which some pegged at a single dollar.
(IFR)
    * State-run refiner Hindustan Petroleum Corp moved
briskly to price its minimum 4 bln rupees ($73 million)
three-year bond sale at 8.75 percent. The sale, having an
unspecified greenshoe, is mandated to Trust Capital and Kotak
Mahindra Bank. (IFR)
    * Steel Authority of India was also close to
fixing its potential sale to which bids were submitted on
Monday. The minimum 1.5 billion rupees deal may raise at least 6
bln rupees, according to bankers close to the deal. (IFR)
      
    USD/INR NDFs (NY closing prices) 
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume
    54.87-90    54.80     55.06    54.87    Moderate
    
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Nov. 5*                   $68.49 mln#
    Month-to-date**          $273.02 mln 
    Year-to-date**            $18.31 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Nov. 5 on SEBI
website.
    #(As per Reuters conversion, $1 = 54.60 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Nov. 2                $327.74  mln
    Month-to-date         $251.61  mln
    Year-to-date            $6.52  bln                    
    * Source: Data as per custodial filing as on Nov. 5 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Nov. 5
    Foreign Banks                       -3.00 bln
    Public Sector Banks                  4.06 bln
    Private Sector Banks                -2.12 bln
    Mutual Funds                         2.24 bln 
    Others                               2.39 bln
    Primary Dealers                     -3.61 bln
    Source: Clearing Corp of India Ltd
       
    LIQUIDITY, data as of Nov. 5
    * The Reserve Bank of India accepted all 29 bids received
for 582.05 billion rupees at its one-day repo auction on Monday,
through which it injects liquidity into the banking system. It
said it did not get any bids at its reverse repo auction,
through which it absorbs excess liquidity from the banking
system. 
    * Indian banks' refinancing with RBI falls to 148.77 billion
rupees. 
    * Indian banks' cash balances with RBI fall to 3.07 trillion
rupees. 

 (Compiled by Swati Bhat)
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