Indian FX/debt factors to watch - Nov 8
GLOBAL MARKETS ROUNDUP * Asian shares fell on Thursday as investors worried about the fiscal crisis in the United States and the European economy's further deterioration, underpinning safe-haven currencies such as the yen and dollar. * The safe-haven yen hovered near a one-month high versus the euro on Thursday, having rallied broadly amid a rout in risk appetite as markets fretted about the U.S. fiscal issues now the presidential election was over. * Brent crude fell nearly 4 percent on Wednesday as problems facing the economies of the United States and Europe darkened investor sentiment a day after the re-election of U.S. President Barack Obama. * Prices of U.S. Treasuries surged on Wednesday after President Barack Obama won re-election, lifting views that monetary policy could stay loose for years amid moderate economic growth. LOCAL MARKETS CLOSE ON NOV. 7 * BSE index 18,902.41 points (+0.45 pct) * NSE index 5,760.10 points (+0.62 pct) * Rupee 54.2050/2150 per dollar (54.43/44) * 10-year bond yield 8.19 pct (8.18 pct) * 5-year OIS rate 7.14 pct (7.10 pct) * 1-year OIS rate 7.77 pct (7.76 pct) * Call money 8.05/8.15 pct (8.10/8.15 pct) OVERNIGHT NEWS * India's outsourcing chiefs crossed their fingers that Barack Obama would take a less hawkish stance on the industry during his second term, as they cheered his re-election as a possible boost to the U.S. economy. * After President Barack Obama's re-election, world leaders expressed hope for stronger cooperation with the United States on issues ranging from the struggle against Islamic extremism to international trade. KEY FACTORS/EVENTS TO WATCH * The World Economic Forum. Attendees include Canadian Prime Minister Stephen Harper, former UK Prime Minister Gordon Brown, Nestle CEO Paul Bulcke, Pakistani politician Imran Khan, Indian Planning Commission Deputy Chairman Montek Singh Alhuwalia and corruption activist Kiran Bedi. All day event. MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS * Morgan Stanley has launched the sale of its India private wealth business, which manages about $1 billion including loans, after entering the highly fragmented and competitive market just four years ago, sources with knowledge of the matter said. * LIC Housing Finance fixed a 2 bln rupees (US$37m) 10-year sale at 9.25 percent. Axis Bank is the sole arranger. (IFR) * Indian lubricants maker Gulf Oil Corp said on Tuesday it has acquired U.S.-based specialty chemicals company Houghton International from a private equity fund for $1.05 billion. USD/INR NDFs (NY closing prices) * For up-to-date prices, double click Close Open High Low Volume 54.72-77 54.40 54.77 54.31 High FII INVESTMENTS-EQUITIES (Net dollars) Nov. 7* $134.40 mln# Month-to-date** $392.04 mln Year-to-date** $18.43 bln * Provisional NSE data ** Source: Data as per custodial filing as on Nov. 7 on SEBI website. #(As per Reuters conversion, $1 = 54.20 rupees) FII INVESTMENTS-DEBT (Net Dollars) * Debt Nov. 6 -$65.18 mln Month-to-date $210.71 mln Year-to-date $6.48 bln * Source: Data as per custodial filing as on Nov. 7 on SEBI website. GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees) Nov. 7 Foreign Banks -9.55 bln Public Sector Banks 8.80 bln Private Sector Banks -4.70 bln Mutual Funds 1.35 bln Others 2.95 bln Primary Dealers 1.16 bln Source: Clearing Corp of India Ltd MONEY MARKET INFLOWS INSTRUMENT PAYMENT DATE AMT (IN MLN RUPEES) 8.79% 2021 Interest Nov 08 36478.50 SDL 09.10%, 2022 Interest Nov 09 282.92 (TAMIL NADU) SDL 09.13%, 2022 Interest Nov 09 867.35 (2 States) SDL 09.16%, 2022 Interest Nov 09 343.50 (BIHAR) SDL 09.17%, 2021 Interest Nov 09 458.50 (ANDHRA PRADESH) SDL 09.18%, 2021 Interest Nov 09 114.75 (PUNJAB) SDL 09.19%, 2021 Interest Nov 09 1263.63 (2 States) SDL 09.20%, 2021 Interest Nov 09 384.10 (3 States) SDL 09.23%, 2022 Interest Nov 09 461.50 (WEST BENGAL) SDL 09.25%, 2021 Interest Nov 09 687.97 (UTTAR PRADESH) 91 days T-Bill Redemption Nov 09 200000.00 182 days T-Bill Redemption Nov 09 50000.00 WEEKLY GOVERNMENT AUCTIONS (In rupees) MATURITIES DATE AMOUNT Dated govt bonds Nov. 9 130 bln LIQUIDITY, data as of Nov. 7 * The Reserve Bank of India accepted all 34 bids received for 665.20 billion rupees at its one-day repo auction on Wednesday, through which it injects liquidity into the banking system. It said it accepted the sole bid received for 2 billion rupees at its reverse repo auction, through which it absorbs excess liquidity from the banking system. * Indian banks' refinancing with RBI falls to 172.28 billion rupees. * Indian banks' cash balances with RBI rise to 3.01 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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