Indian FX/debt factors to watch - Nov 27

Tue Nov 27, 2012 8:34am IST

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GLOBAL MARKETS ROUNDUP
    * The euro hit a one-month high and Asian shares climbed for
a seventh straight day on Tuesday after a deal on new debt
targets for Greece and a political agreement on disbursing the
next installment of aid. 
    * The euro was caught in choppy trade on Tuesday after euro
zone and International Monetary Fund officials clinched
agreement on a new debt target for Greece in a significant step
towards releasing a much-needed aid package for Athens. 
    * Oil prices fell on Monday as concerns about Greek debt
talks and U.S. budget negotiations outweighed worries about
potential Middle East supply disruptions. 
    * U.S. Treasury prices rose on Monday as fiscal challenges
in the United States and political uncertainty in Spain fed
investors' appetite for safe-haven assets. 

    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 18,537.01 points (0.16 pct)
    * NSE index 5,635.90 points (0.17 pct)
    * Rupee 55.73/74 per dollar (55.5350/5450)
    * 10-year bond yield 8.20 pct (8.23 pct) 
    * 5-year OIS rate 7.17 pct (7.18 pct) 
    * 1-year OIS rate 7.76 pct (7.76 pct) 
    * Call money 8.00/8.10 pct (8.05/8.10 pct)
    
    OVERNIGHT NEWS
    * India's central bank has relaxed overseas borrowing rules
for successful bidders in the country's cellphone airwaves
auction, making it easier for them to raise money to pay the
cash-strapped government. 

    KEY FACTORS/EVENTS TO WATCH
    * Finance minister P Chidambaram will address the media at
4:15 p.m. IST at the Congress headquarters in New Delhi on how
the government intends to push its economic reforms in
parliament against the tactics of an obstructive opposition. 
    * Top officials from Reserve Bank of India and Chinese
government part of the 'Asian Financial Cooperation Conference'
in Mumbai. 
    * RBI deputy governor Anand Sinha speaks on panel at 0415
GMT on Basel III. Will India force its banks to raise capital
next year when the new rules kick in? 
    * London mayor Boris Johnson to address a business
conference organised by the Federation of Indian Chambers of
Commerce and Industry (FICCI) in New Delhi at 1000 GMT.
      
    MAJOR DEALS/ACQUISITIONS
    * Struggling Indian carriers Jet Airways India Ltd 
and SpiceJet Ltd are in talks with Abu Dhabi's Etihad
Airways and Malaysia's AirAsia Bhd to sell minority
stakes, a senior government official with direct knowledge of
the talks said. 
   However, the Malaysian budget carrier dismissed the
speculation.   
    * Indian tractor maker Mahindra and Mahindra hopes
to strike a deal to buy up to half of British luxury sports car
maker Aston Martin by the end of this week, a person with direct
knowledge of the matter said on Monday.  
   The source said an initial 40-percent stake could rise to 50
percent for a total price unlikely to top $400 million.
 
    * Power Finance Corp is expected to announce its debut
dollar bond as early as Tuesday, depending on market conditions
and on an approval by the Reserve Bank of India. 
    * ICICI Bank was doing a Reg S-only tap on the five-year
bonds via Bank of America Merrill Lynch, Citigroup, HSBC, JP
Morgan and Standard Chartered. With books on the US$250m
reopening four times oversubscribed around mid-afternoon in
Asia, it was revised down to 345bp/340bp and is likely to price
at the tight end of that. (IFR)
    * Rural Electrification Corp was also finalising a mandate
for a dollar bond that some say may well emerge this year still
or at least early next year. The company received approval from
local regulators earlier this year to raise up to US$750m in the
dollar market. This was followed with a US$250m loan, so it
still has US$500m available that it can get from the global bond
markets. (IFR)
    * Reliance Industries was heard meeting investors last week
in Hong Kong and Singapore via HSBC, though it is unclear if
that will turn into a deal. (IFR)
      
    USD/INR NDFs (NY closing prices)  
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume 
    55.83-88    55.98     56.10    55.81    Moderate

    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Nov. 26*                  $29.29 mln#
    Month-to-date**            $1.14 bln 
    Year-to-date**            $19.17 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Nov. 26 on
SEBI website.
    #(As per Reuters conversion, $1 = 55.70 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Nov. 23                 $63.37 mln
    Month-to-date         -$148.35 mln
    Year-to-date             $6.12 bln                    
    * Source: Data as per custodial filing as on Nov. 26 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Nov. 26
    Foreign Banks                       -1.90 bln
    Public Sector Banks                 -3.93 bln
    Private Sector Banks                -1.57 bln
    Mutual Funds                         4.15 bln 
    Others                              -0.70 bln
    Primary Dealers                      3.96 bln
    Source: Clearing Corp of India Ltd
    
    MONEY MARKET INFLOWS
INSTRUMENT               PAYMENT     DATE    AMT (IN MLN RUPEES)
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)
SDL 05.70%, 2014         Interest   Nov 29           2414.13 
(19 States) 
SDL 08.39%, 2018         Interest   Nov 29             83.90 
(UTTARAKHAND) 
SDL 08.50%, 2018         Interest   Nov 29            212.50 
(KERALA) 
SDL 08.51%, 2018         Interest   Nov 29            425.50 
(UTTAR PRADESH) 
SDL 08.52%, 2018         Interest   Nov 29            426.00 
(WEST BENGAL) 
SDL 08.68%, 2018         Interest   Nov 29            244.82 
(JAMMU & KASHMIR) 
9.81% 2013               Interest   Nov 30           5395.50 
10.00% 2014              Interest   Nov 30           1166.63 
10.25% 2021              Interest   Nov 30          13434.33 
91 days T-Bill           Redemption Nov 30          95109.00 
364 days T-Bill          Redemption Nov 30          40000.00 
For full table: 
    
    WEEKLY GOVERNMENT AUCTIONS 
MATURITIES               DATE          AMOUNT (In rupees)   
Tbills                  Nov. 27            100 bln
Dated securities        Nov. 30            130 bln 
    
    LIQUIDITY
    * The Reserve Bank of India said on Monday it accepted all
41 bids for 1.11 trillion rupees at its one-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 steady at 212.95
billion rupees. 
    * Indian banks' cash balances with RBI rise to 2.95 trillion
rupees. 

 (Compiled by Swati Bhat; Editing by Sunil Nair)
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