Indian FX/debt factors to watch - Nov 29

Thu Nov 29, 2012 8:24am IST

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GLOBAL MARKETS ROUNDUP
    *  Asian shares edged higher on Thursday, mirroring U.S. and
European stock rises overnight, as sentiment improved after a
senior U.S. lawmaker said he was "optimistic" on reaching a
budget deal before the end of the year to avoid a fiscal crisis.
 
    * The yen slipped from a one-week high hit overnight on
Thursday and the euro regained some footing after comments from
U.S. policy makers rekindled hopes of a deal to avert a sharp
fiscal tightening. 
    * Brent crude rose towards $110 a barrel on Thursday, as
U.S. lawmakers appeared to be inching closer to a deal on the
"fiscal cliff" and tensions in the Middle East worsened,
although investors remained wary of the outlook for oil demand
next year. 
    * A lack of progress in talks in Washington to avert a
fiscal crisis mostly lifted U.S. government bond prices for a
third straight day on Wednesday as the government sold $35
billon of five-year Treasury notes. 

    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 18,842.08 points (1.65 pct)
    * NSE index 5,727.45 points (1.62 pct)
    * Rupee 55.45/46 per dollar (55.73/74)
    * 10-year bond yield 8.19 pct (8.20 pct) 
    * 5-year OIS rate 7.15 pct (7.17 pct) 
    * 1-year OIS rate 7.74 pct (7.76 pct) 
    * Call money 8.00/8.10 pct (8.00/8.10 pct)
    
    OVERNIGHT NEWS
    *  India's government failed on Wednesday to persuade the
opposition to drop its demand for a vote on a recent decision to
allow foreign supermarkets to set up shop, worsening a standoff
that has paralysed parliament and jeopardised economic reforms.
 
    * India's economy probably expanded near its slowest pace in
three years in the quarter to September, according to a Reuters
poll, suggesting there were few signs of an early turnaround,
despite reform steps taken by the government to lure back
investors. 
 
    KEY FACTORS/EVENTS TO WATCH
    * India's parliament resumes for a fifth day after being
paralysed for the first four days of the ongoing winter session
and a public holiday on Wednesday.
     
    MAJOR DEALS/ACQUISITIONS
    * IndusInd Bank is set to raise 20 billion rupees ($359
million) from the sale of 52.1 million shares at an average
price of 384 rupees. The shares were priced at the top end of
the 375-384 rupees indicative range. The final pricing will be
formally announced on Thursday. (IFR)
   * L&T Finance Holdings raised 3.62 billion rupees from the
disposal of 7.99 million shares in Federal Bank at an average
price of 453 rupees. The shares were priced near the bottom of
the 450.00 rupees-469.75 rupees price range, giving a 3.6
percent discount to the Nov. 26 close of 469.75 rupees. (IFR)
   * On the offshore front, ICICI Bank (Baa2/BBB-) last night
priced an opportunistic tap of its 2018 bonds helping it shave
of 60 bps off its original cost of funding and achieving the
tightest pricing for an Indian bank this year. (IFR)

    USD/INR NDFs (NY closing prices)  
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume 
    55.87-92    55.93     56.10    55.90     High

    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Nov. 27*                 $195.05 mln#
    Month-to-date**            $1.18 bln 
    Year-to-date**            $19.21 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Nov. 27 on
SEBI website.
    #(As per Reuters conversion, $1 = 55.5250 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Nov. 26                 $16.47 mln
    Month-to-date         -$131.88 mln
    Year-to-date             $6.14 bln                    
    * Source: Data as per custodial filing as on Nov. 27 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Nov. 27
    Foreign Banks                       -2.32 bln
    Public Sector Banks                 -3.14 bln
    Private Sector Banks                -7.89 bln
    Mutual Funds                         4.45 bln 
    Others                               3.06 bln
    Primary Dealers                      5.84 bln
    Source: Clearing Corp of India Ltd
    
    MONEY MARKET INFLOWS
INSTRUMENT               PAYMENT     DATE    AMT (IN MLN RUPEES)
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)   
Dated securities        Nov. 30            130 bln 
    
    LIQUIDITY
    * The Reserve Bank of India said on Tuesday it accepted all
37 bids for 1.06 trillion rupees at its two-day repo auction,
through which it injects liquidity into the banking system. It
got no bids at its reverse repo auction through which it injects
liquidity into the banking system. 
    * Indian banks' refinancing with RBI falls at 211.8 billion
rupees. 
    * Indian banks' cash balances with RBI rise to 3.06 trillion
rupees. 

 (Compiled by Subhadip Sircar and Archana Narayanan)
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