Indian FX/debt factors to watch - Dec 4

GLOBAL MARKETS ROUNDUP
* Asian shares dipped on Tuesday after U.S. manufacturing
activity hit a three-year low in November, while the euro
hovered near a six-week high on optimism over a planned debt buy
back by Greece.
* The dollar slipped against the yen on Tuesday after U.S.
manufacturing activity hit a three-year low in November, while
the euro succumbed to profit-taking after hitting highs against
both the dollar and the yen the previous day.
* Brent oil prices turned lower on Monday after data showed
U.S. manufacturing activity slowed to a three-year low,
offsetting more optimistic figures from China.
* U.S. Treasuries prices eased on Monday after Spain sought
help for its banks and data showed the pace of Chinese
manufacturing quickened, damping demand for safe-haven U.S.
debt.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 19,305.32 points (-0.18 pct)
* NSE index 5,870.95 points (-0.15 pct)
* Rupee 54.77/78 per dollar (54.26/27)
* 10-year bond yield 8.17 pct (8.18 pct)
* 5-year OIS rate 7.12 pct (7.12 pct)
* 1-year OIS rate 7.71 pct (7.72 pct)
* Call money 8.00/8.05 pct (8.00/8.05 pct)

KEY FACTORS/EVENTS TO WATCH
* The lower house of India's parliament begins a debate on
supermarket reform.
* The Reserve Bank of India's (RBI) Deputy Governor Subir
Gokarn will address an Economics Conclave organised by the
School of Economics, Narsee Monjee Institute of Management
Studies. Event scheduled at 0430 GMT.

MAJOR DEALS/ACQUISITIONS
* India's Sterlite Industries plans to raise 5
billion rupees ($91.92 million) through a bond issue at 9.24
percent, a source with direct knowledge of the deal told Reuters
on Monday.
* United Bank of India on Friday priced its 3 bln rupees
(USD55.15 mln) perpetual bonds at 9.27 percent. The bonds have a
call option at the end of the tenth year. The bonds are locally
rated AA. The deal settles on Wednesday. (IFR)
* Network18 Media & Investments Ltd will sell its
shareholding in news provider Newswire18, the company said in a
statement to the stock exchange, in a deal worth 900 million
rupees ($16.6 million).
* Shares in India's Jet Airways rose over 7 percent
on a report in Mint newspaper that the airline will soon seek
regulatory approval to tweak its ownership pattern to facilitate
a stake sale to Etihad Airways.

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
54.88-92 54.89 54.98 54.85 High

FII INVESTMENTS-EQUITIES (Net dollars)

Dec. 3* $55.23 mln#
Month-to-date (Nov)** $2.00 bln
Year-to-date** $20.08 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Dec. 3 on SEBI
website.
#(As per Reuters conversion, $1 = 54.80 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Nov. 30 -$193.73 mln
Month-to-date (Nov) $276.11 mln
Year-to-date $6.14 bln
* Source: Data as per custodial filing as on Dec. 3 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Dec. 3
Foreign Banks 2.17 bln
Public Sector Banks -0.66 bln
Private Sector Banks -5.18 bln
Mutual Funds 3.45 bln
Others 2.22 bln
Primary Dealers -2.00 bln
Source: Clearing Corp of India Ltd

MONEY MARKET INFLOWS
INSTRUMENT PAYMENT DATE MOUNT (IN MLN RUPEES)
5.59% 2016 Interest Dec 04 1677.00
6.13% 2028 Interest Dec 04 3371.50
8.97% 2030 Interest Dec 05 27358.50
SDL 08.86%, 2022 Interest Dec 06 332.25
(ANDHRA PRADESH)
SDL 08.87%, 2022 Interest Dec 06 722.91
(3 States)
SDL 08.88%, 2022 Interest Dec 06 666.00
(GUJARAT)
SDL 08.90%, 2022 Interest Dec 06 55.63
(TRIPURA)

WEEKLY GOVERNMENT AUCTIONS
MATURITIES DATE AMOUNT (In rupees)
Bond repurchase via OMO Dec. 4 120 bln
Tbills Dec. 5 100 bln
Dated govt securities Dec. 7 120 bln

LIQUIDITY
* The Reserve Bank of India said on Monday it accepted all
41 bids for 1.13 trillion rupees at its one-day repo auction,
through which it injects liquidity into the banking system. It
said it did not get any bids at its reverse repo auction through
which it injects liquidity into the banking system.

* Indian banks' refinancing with RBI falls to 212.65 billion
rupees.
* Indian banks' cash balances with RBI rise to 2.88 trillion
rupees.

(Compiled by Swati Bhat)