Indian FX/debt factors to watch - Nov 26

Mon Nov 26, 2012 8:42am IST

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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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