Indian FX/debt factors to watch - Nov 8

Thu Nov 8, 2012 8:34am IST

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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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