Indian FX/debt factors to watch - Nov 6
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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DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.
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U.S. President Barack Obama watched a dazzling parade of India's military might and cultural diversity on Monday, the second day of a visit trumpeted as a chance to establish a robust strategic partnership between the world's two largest democracies. Full Article | Slideshow