Indian FX/debt factors to watch - Nov 26
GLOBAL MARKETS ROUNDUP * Asian shares rose on Monday on the hope Greece can avoid a near-term bankruptcy, with euro zone finance ministers meeting later in the day, but a regional Spanish vote favouring separatist parties clouded Madrid's push for fiscal austerity. * The euro hit a seven-month high against the yen and held near a one-month peak versus the dollar on Monday, supported by hopes that Greece will finally secure more emergency loans to keep it afloat. * Oil rose in thin holiday trade on Friday as fresh protests in Egypt once again stoked supply concerns, with additional support coming from optimism about talks on releasing aid to Greece. * U.S. government debt prices fell on Friday in light post-Thanksgiving trading and a reduction in safe haven demand for bonds as Wall Street stocks rallied on hopes lenders would soon release more cash to debt-laden Greece. LOCAL MARKETS PREVIOUS CLOSE * BSE index 18,506.57 points (-0.06 pct) * NSE index 5,626.60 points (-0.02 pct) * Rupee 55.5350/5450 per dollar (55.21/22) * 10-year bond yield 8.23 pct (8.23 pct) * 5-year OIS rate 7.18 pct (7.19 pct) * 1-year OIS rate 7.76 pct (7.76 pct) * Call money 8.05/8.10 pct (8.05/8.10 pct) OVERNIGHT NEWS * India's finance minister has banned government officials from holding conferences at five-star hotels, restricted travel and ordered a freeze on hiring to fill vacant posts. * India's economic growth probably languished near a three-year low of 5.5 percent in the quarter that ended in September, Finance Minister P. Chidambaram said on Saturday, a pace that will increase the pressure on the government to enact tough reforms. * India raised 8.1 billion rupees ($147 million) by selling shares of state-run Hindustan Copper Ltd on Friday, kick-starting a stalled divestment programme that is crucial to reining in a ballooning fiscal deficit. * Global logistics services provider DHL Express's share sale in India's Blue Dart Express Ltd was covered nearly four times in a $172 million deal, revised stock exchanges data showed on Friday. KEY FACTORS/EVENTS TO WATCH * Top officials from Reserve Bank of India and Chinese government part of the 'Asian Financial Cooperation Conference' on Nov. 26-27 in Mumbai. Speakers include RBI Deputy Governor H.R. Khan and China's top economic planning agency head Zhang Ping. * The government is holding an all-party meeting at 0630 GMT on Monday to break the logjam in parliament. MAJOR DEALS/ACQUISITIONS * A unit of India's state-run Oil and Natural Gas Corp plans to raise up to $900 million in the first quarter of 2013 through a dollar bond issue to fund an acquisition in Azerbaijan, a top official said. * Indian lender ICICI Bank is out with price talk on a USD 250 mln retap of its 4.7 percent Reg S/144a bonds due 2018 at 350bp over US Treasuries. The transaction, however, is being carried out in a Reg S format. USD/INR NDFs (NY closing prices) * For up-to-date prices, double click Close Open High Low Volume 55.68-73 55.72 55.89 55.70 Moderate FII INVESTMENTS-EQUITIES (Net dollars) Nov. 23* $66.01 mln# Month-to-date** $1.05 bln Year-to-date** $19.08 bln * Provisional NSE data ** Source: Data as per custodial filing as on Nov. 23 on SEBI website. #(As per Reuters conversion, $1 = 55.50 rupees) FII INVESTMENTS-DEBT (Net Dollars) * Debt Nov. 22 $46.98 mln Month-to-date -$84.98 mln Year-to-date $6.19 bln * Source: Data as per custodial filing as on Nov. 23 on SEBI website. GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees) Nov. 23 Foreign Banks -16.29 bln Public Sector Banks 6.90 bln Private Sector Banks 14.24 bln Mutual Funds 4.28 bln Others 6.89 bln Primary Dealers -16.03 bln Source: Clearing Corp of India Ltd MONEY MARKET INFLOWS INSTRUMENT PAYMENT DATE AMT (IN MLN RUPEES) SDL 08.03%, 2019 Interest Nov 26 128.48 (PUNJAB) SDL 08.05%, 2019 Interest Nov 26 1479.59 (3 States) SDL 08.05%, 2020 Interest Nov 26 201.25 (RAJASTHAN) SDL 08.06%, 2019 Interest Nov 26 201.50 (RAJASTHAN) SDL 08.07%, 2020 Interest Nov 26 766.65 (3 States) SDL 08.09%, 2020 Interest Nov 26 488.43 (GUJARAT) SDL 08.10%, 2019 Interest Nov 26 980.06 (2 States) SDL 08.10%, 2020 Interest Nov 26 405.00 (UTTAR PRADESH) SDL 08.66%, 2021 Interest Nov 26 433.00 (UTTAR PRADESH) SDL 08.67%, 2021 Interest Nov 26 433.50 (ANDHRA PRADESH) SDL 08.68%, 2021 Interest Nov 26 868.00 (2 States) SDL 07.44%, 2019 Interest Nov 27 186.00 (RAJASTHAN) SDL 07.45%, 2019 Interest Nov 27 372.50 (ANDHRA PRADESH) SDL 07.50%, 2019 Interest Nov 27 562.50 (WEST BENGAL) SDL 07.53%, 2019 Interest Nov 27 564.75 (UTTAR PRADESH) For full table: WEEKLY GOVERNMENT AUCTIONS MATURITIES DATE AMOUNT (In rupees) Tbills Nov. 27 100 bln LIQUIDITY * The Reserve Bank of India said on Friday it accepted all 42 bids for 1.19 trillion rupees at its three-day repo auction, through which it injects liquidity into the banking system. It also accepted the sole bid for 50 million rupees at its reverse repo auction through which it injects liquidity into the banking system. * Indian banks' refinancing with RBI rises to 206.64 billion rupees. * Indian banks' cash balances with RBI rise to 2.91 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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The government made a push on Wednesday to bolster its strained finances, offering to sell a stake in miner Coal India and more mobile phone airwaves as it aimed to deliver on a promise to trim its fiscal deficit. Full Article