Indian FX/debt factors to watch - Nov 21
GLOBAL MARKETS ROUNDUP * Asian shares steadied on Wednesday, after two days of gains, as investors refocused on the risk of a U.S. fiscal crisis following Federal Reserve Chairman Ben Bernanke's remarks that the budget impasse was already damaging growth. * The yen slumped to 7-1/2-month lows against the dollar on Wednesday and fell nearly as far against the euro on views Japan's central bank will be pushed into implementing more radical monetary expansion policies. * Oil fell from a one-month high on Tuesday amid signs of a ceasefire that would end a week of rocket attacks and air strikes between Palestinians and Israelis. * U.S. Treasury debt prices fell for a second day on Tuesday in thin volume as investors gained faith lawmakers in Washington will reach a deal to avert the so-called "fiscal cliff" of spending cuts and tax hikes due to take effect in early 2013. LOCAL MARKETS PREVIOUS CLOSE * BSE index 18,329.32 points (-0.05 pct) * NSE index 5,571.55 points (flat) * Rupee 55.0950/1050 per dollar (55.06/07) * 10-year bond yield 8.20 pct (8.19 pct) * 5-year OIS rate 7.17 pct (7.15 pct) * 1-year OIS rate 7.76 pct (7.74 pct) * Call money 8.05/8.10 pct (8.05/8.10 pct) OVERNIGHT NEWS * India's government aims to pass bills opening up the insurance and pension sectors to foreign investors in parliament's forthcoming session, a minister said on Tuesday, the next step in a reform programme seen as key to reviving economic growth. * India's central bank has extended the relaxation of the period of realization and repatriation to the country of the full value of goods or software exported by six months. * India received bids worth 150.69 billion rupees ($2.74 billion) in unused foreign debt limits for government and corporate bonds, more than the 106.16 billion rupees on offer, two market sources said on Tuesday. KEY FACTORS/EVENTS TO WATCH * The Bharatiya Janata Party (BJP), the principal opposition party in India, plans to hold protests around the country, against corruption, price rise and FDI in the supermarket sector on Wednesday, just a day before the winter session of parliament begins. * Reserve Bank of India Deputy Governor Subir Gokarn, who handles the monetary policy, will address college students in Mumbai on 'The Current Economic Scenario in India' in the morning. In the evening, Gokarn will preside over the Exim Bank Commencement Day Annual Lecture on 'Developments in the World Trading System: India's Options'. * RBI Deputy Governor Keshab Chandra Chakrabarty is scheduled to give a keynote address at ASSOCHAM's 8th Annual Banking Summit in New Delhi. MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS * A jumbo 259 billion rupee (US$4.7bn) project finance loan for Tata Steel is likely to be launched into syndication in two weeks. (IFR) * Andhra Pradesh Expressway, a SPV of IL&FS Transportation Networks, raised 5.3 billion rupees (US$96m) from a 13-year amortising bond sale. Sole bookrun by JP Morgan India, the sale is the first such in two years. (IFR) USD/INR NDFs (NY closing prices) * For up-to-date prices, double click Close Open High Low Volume 55.36-40 55.30 55.40 55.30 High FII INVESTMENTS-EQUITIES (Net dollars) Nov. 20* $26.02 mln# Month-to-date** $936.01 mln Year-to-date** $18.97 bln * Provisional NSE data ** Source: Data as per custodial filing as on Nov. 20 on SEBI website. #(As per Reuters conversion, $1 = 55.10 rupees) FII INVESTMENTS-DEBT (Net Dollars) * Debt Nov. 19 -$43.32 mln Month-to-date -$82.34 mln Year-to-date $6.19 bln * Source: Data as per custodial filing as on Nov. 20 on SEBI website. GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees) Nov. 20 Foreign Banks -3.63 bln Public Sector Banks 5.12 bln Private Sector Banks 5.76 bln Mutual Funds 2.30 bln Others 2.04 bln Primary Dealers -11/59 bln Source: Clearing Corp of India Ltd MONEY MARKET INFLOWS INSTRUMENT PAYMENT DATE AMT (IN MLN RUPEES) SDL 07.77%, 2018 Interest Nov 21 135.98 (KERALA) SDL 07.80%, 2018 Interest Nov 21 780.00 (2 States) SDL 07.85%, 2018 Interest Nov 21 392.50 (UTTAR PRADESH) SDL 07.86%, 2018 Interest Nov 21 589.50 (WEST BENGAL) SDL 09.12%, 2022 Interest Nov 23 1368.00 (3 States) SDL 09.13%, 2022 Interest Nov 23 136.95 (PUNJAB) SDL 09.15%, 2022 Interest Nov 23 457.50 (KERALA) SDL 09.17%, 2022 Interest Nov 23 687.75 (UTTAR PRADESH) SDL 09.19%, 2021 Interest Nov 23 32.17 (GOA) SDL 09.21%, 2021 Interest Nov 23 115.13 (PUNJAB) SDL 09.22%, 2021 Interest Nov 23 479.44 (3 States) SDL 09.22%, 2022 Interest Nov 23 691.50 (WEST BENGAL) SDL 09.23%, 2021 Interest Nov 23 638.25 (2 States) SDL 09.25%, 2021 Interest Nov 23 693.75 (2 States) SDL 09.28%, 2021 Interest Nov 23 464.00 (WEST BENGAL) SDL 09.33%, 2021 Interest Nov 23 81.64 (JAMMU & KASHMIR) 12.60% 2018 Interest Nov 23 7958.08 91 days T-Bill Redemption Nov 23 111220.00 182 days T-Bill Redemption Nov 23 50000.00 For full table: WEEKLY GOVERNMENT AUCTIONS MATURITIES DATE AMOUNT (In rupees) T-Bills Nov. 21 100 bln Bonds Nov. 23 130 bln LIQUIDITY * The Reserve Bank of India (RBI) said on Monday it accepted all 41 bids for 1.05 trillion rupees at its one-day repo auction, through which it injects liquidity into the banking system. It also accepted the sole bid for 300 million rupees at its reverse repo auction through which it injects liquidity into the banking system. * Indian banks' refinancing with RBI rises to 188.69 billion rupees. * Indian banks' cash balances with RBI fall to 3 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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