Indian FX/debt factors to watch - Dec 7

Fri Dec 7, 2012 8:35am IST

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GLOBAL MARKETS ROUNDUP
    * Asian shares ticked up to a 16-month high on Friday
following modest overnight gains in global equities as investors
watched progress in U.S. budget talks and awaited U.S. nonfarm
payrolls data later in the day. 
    * The euro languished at one-week lows against the greenback
on Friday, having suffered a major setback after the European
Central Bank painted a bleak outlook for the euro zone and
discussed cutting interest rates. 
    * Oil prices fell on Thursday after the head of the European
Central Bank said the euro zone's economic outlook faces
"downside risk" and a recovery may not happen until later in
2013. 
    * U.S. Treasuries prices rose on Thursday with benchmark
yields hovering at three-week lows ahead of government data that
will likely show slower job creation last month due to business
disruption caused by superstorm Sandy. 

    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 19,486.80 points (0.49 pct)
    * NSE index 5,930.90 points (0.52 pct)
    * Rupee 54.135/145 per dollar (54.54/55)
    * 10-year bond yield 8.17 pct (8.17 pct) 
    * 5-year OIS rate 7.11 pct (7.13 pct) 
    * 1-year OIS rate 7.70 pct (7.72 pct) 
    * Call money 8.10/8.15 pct (8.00/8.10 pct)
    
    OVERNIGHT NEWS
    * India's industrial production index rose at its fastest
annual pace in nearly a year in October, after unexpectedly
contracting in September, aided by a statistical spurt in
infrastructure-related output, a Reuters poll found.
 
    * The Maldives has won a court case allowing it to cancel a
$511 million airport development contract with India's GMR
Infrastructure, clearing the way for it to take over
its main airport. 
    * India's BSE Ltd, the former Bombay Stock Exchange which
has lost market share to rivals, has chosen 14 banks for a share
offering planned for the first half of 2013, its chief executive
said. 
    * India's central bank will buy up to 120 billion rupees
($2.22 billion) of federal government bonds on Dec. 11 through
open market operations (OMO), it said in a release on Thursday.
 
    * The leader of a powerful regional party said on Thursday
she would back the Indian government in a parliamentary vote on
its plan to allow in foreign supermarkets, virtually ensuring
that an opposition motion against the reform will be defeated.
 

   KEY FACTORS/EVENTS TO WATCH
    * Final vote in India's parliament on supermarket reform.
    * India cbank deputy Gokarn at an industry event in the
eastern city of Kolkata 0430 GMT.
    * RBI to release forex reserves, bank loan data.
    
    MAJOR DEALS/ACQUISITIONS
    * Credit Analysis and Research (Care Ratings) is expected to
price its 7.2 million share, 5.40 billion rupees ($100m) IPO at
the top end of the 700-750 rupees price range. (IFR)
    * US EXIM Bank has provided direct loan of $1.06 billion to
Reliance Industries besides providing a guarantee on another
$1.06 billion loan given by JP Morgan Chase to the company.
(IFR)
    * Syndicate Bank has committed $50 million to the $1 billion
loan backing GVK Power & Infrastructure's acquisition of assets
from Australia's Hancock Group. A couple of other Indian banks
are in the process of getting credit approvals for more sizeable
commitments. (IFR)
    * Power Finance Corp has mandated ANZ and Bank of America
Merrill Lynch on an up to $250 million four-year term loan.
(IFR)

    USD/INR NDFs (NY closing prices)  
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume 
    54.50-55    54.40     54.60    54.32      High

    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Dec. 6*                  $154.91 mln#
    Month-to-date**          $733.87 mln 
    Year-to-date**            $20.51 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Dec. 6 on SEBI
website.
    #(As per Reuters conversion, $1 = 54.095 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Dec. 5                 -$43.59 mln
    Month-to-date         -$443.49 mln
    Year-to-date             $5.87 bln                    
    * Source: Data as per custodial filing as on Dec. 6 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Dec. 6
    Foreign Banks                       -6.68 bln
    Public Sector Banks                  1.45 bln
    Private Sector Banks                 1.86 bln
    Mutual Funds                         4.27 bln 
    Others                               2.23 bln
    Primary Dealers                     -3.13 bln
    Source: Clearing Corp of India Ltd
    
    MONEY MARKET INFLOWS
INSTRUMENT               PAYMENT    DATE  AMOUNT (IN MLN RUPEES)
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
OMO                       Dec. 11             120 bln
    LIQUIDITY
    * The Reserve Bank of India said on Thursday it accepted all
27 bids for 732.05 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 rises to 238.54 billion
rupees. 
    * Indian banks' cash balances with RBI rise to 3.11 trillion
rupees. 

 (Compiled by Subhadip Sircar and Archana Narayanan)
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