Indian FX/debt factors to watch - Dec 6

Thu Dec 6, 2012 8:38am IST

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GLOBAL MARKETS ROUNDUP
    * Asian shares were steady near 16-month highs on Thursday,
supported by hopes that U.S. lawmakers will reach a compromise
to avoid the so-called fiscal cliff of year-end tax hikes and
spending cuts which threaten to push the U.S. economy back into
recession. 
    * The euro held its ground in early Asian trade on Thursday
after slipping from a seven-week high against the dollar in the
previous session, as investors awaited a European Central Bank
policy meeting. 
    * Brent crude was steady around $110 a barrel on Wednesday,
nursing losses from the previous two sessions, as investors
fretted over the U.S. fiscal crisis hurting oil demand despite
supply fears fanned by Middle East tensions. 
    * U.S. 10-year Treasuries prices were steady in Asian trade
on Wednesday, as U.S. fiscal talks dragged on. 

    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 19,391.86 points (0.23 pct)
    * NSE index 5,900.50 points (0.19 pct)
    * Rupee 54.54/55 per dollar (54.68/69)
    * 10-year bond yield 8.17 pct (8.17 pct) 
    * 5-year OIS rate 7.13 pct (7.13 pct) 
    * 1-year OIS rate 7.72 pct (7.73 pct) 
    * Call money 8.00/8.10 pct (8.05/8.10 pct)
    
    OVERNIGHT NEWS
    * India's fragile ruling coalition won a vote on allowing
foreign supermarkets to operate in Asia's third-largest economy
on Wednesday, in a key test of support for Prime Minister
Manmohan Singh and his flagship economic reform. 
    
    KEY FACTORS/EVENTS TO WATCH
    * India's cabinet, headed by Prime Minister Manmohan Singh,
is likely to approve the setting up of National Investment Board
or a cabinet committee on investment, proposed by finance
minister P Chidambaram about two months ago.
    * The Reserve Bank of India Governor Duvvuri Subbarao, along
with the other four deputy governors, will hold the winter board
meeting in Kolkata.  Subbarao will also hold a press conference
later in the day.
    * Three-day conference in Mumbai. The Shome Committee Report
on taxation of indirect transfer involving Indian assets and the
General Anti Avoidance Rules (GAAR) will be among the major
discussion topics of the 18th Annual Conference on International
Taxation in Mumbai from December 6-8, this year. 
    
    MAJOR DEALS/ACQUISITIONS
    *  Indian real estate fund Indiareit Fund Advisors, a unit
of drugmaker Piramal Enterprises, said it raised 4.4
billion rupees ($80.48 million) by selling three of its
investments and expects to raise another $120 million through
more exits in the near future. 
    * State-run Power Finance Corp is planning a local bond sale
soon. The country's top power producer is planning a separately
tradable redeemable principal parts format for the sale, with
redemptions in the second, third, fifth and seventh
year. 
    * The multi-tranche facility for Bharat  Petroleum Corp Ltd
(BPCL) backed by a standby letter of credit from State Bank of
India has been increased to US$700m and signed by three banks,
according to sources. 
    
    USD/INR NDFs (NY closing prices)  
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume 
    54.66-69    54.84     54.85    54.65      High

    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Dec. 5*                  $160.91 mln#
    Month-to-date**          $558.46 mln 
    Year-to-date**            $20.34 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Dec. 5 on SEBI
website.
    #(As per Reuters conversion, $1 = 54.60 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Dec. 4                 -$53.29 mln
    Month-to-date         -$399.90 mln
    Year-to-date             $5.93 bln                    
    * Source: Data as per custodial filing as on Dec. 5 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Dec. 5
    Foreign Banks                        2.60 bln
    Public Sector Banks                 -4.94 bln
    Private Sector Banks                -1.81 bln
    Mutual Funds                         6.63 bln 
    Others                              -2.04 bln
    Primary Dealers                     -0.44 bln
    Source: Clearing Corp of India Ltd
    
    MONEY MARKET INFLOWS
INSTRUMENT               PAYMENT    DATE  AMOUNT (IN MLN RUPEES)
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) 
SDL 09.02%, 2021         Interest   Dec 07          721.60 
(3 States) 
SDL 09.03%, 2021         Interest   Dec 07          361.20 
(KERALA) 
SDL 09.04%, 2021         Interest   Dec 07          565.00 
(WEST BENGAL) 
SDL 09.05%, 2021         Interest   Dec 07           67.88 
(UTTARAKHAND) 
SDL 09.06%, 2021         Interest   Dec 07          226.50 
(JAMMU & KASHMIR) 
8.33% 2036               Interest   Dec 07        35819.00 
91 days T-Bill           Redemption Dec 07       148860.00 
182 days T-Bill          Redemption Dec 07        50000.00
SDL 08.43%, 2020         Interest   Dec 08          421.50 
(KARNATAKA) 
SDL 08.44%, 2020         Interest   Dec 08          833.45 
(3 States) 
SDL 08.59%, 2021         Interest   Dec 08          429.50 
(TAMIL NADU) 
SDL 08.60%, 2021         Interest   Dec 08         1354.50 
(3 States) 
SDL 08.61%, 2021         Interest   Dec 08          301.35 
(JAMMU & KASHMIR) 
6.49% 2015               Interest   Dec 08          12980.00    
    
    WEEKLY GOVERNMENT AUCTIONS 
MATURITIES                 DATE          AMOUNT (In rupees)   
Dated govt securities     Dec. 7              120 bln
        
    LIQUIDITY
    * The Reserve Bank of India said on Wednesday it accepted
all 32 bids for 796.25 billion 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 absorbs liquidity from the system.
 
    * Indian banks' refinancing with RBI falls to 238.14 billion
rupees. 
    * Indian banks' cash balances with RBI rises to 2.91
trillion rupees. 

 (Compiled by Swati Bhat)
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