Indian FX/debt factors to watch - Dec 11

GLOBAL MARKETS ROUNDUP
* Asian shares and the euro steadied on Tuesday, drawing
support from expectations that the U.S. Federal Reserve will
take fresh economic stimulus measures this week.
* The euro extended its recovery from a two-week low on
Tuesday as nerves calmed over Italy's latest political turmoil
and the prospects of more stimulus from the Federal Reserve
pinned down the dollar.
* Brent oil prices rose slightly on Monday after Chinese
data showed oil imports increased last month, a sign of robust
demand for commodities in the world's No. 2 oil consuming
country.
* U.S. Treasury debt prices edged higher on Monday as
investors worried about budget battles in Washington, but a push
for price concessions ahead of $66 billion in government debt
sales this week kept gains modest.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 19,409.69 points (-0.07 pct)
* NSE index 5,908.90 points (0.03 pct)
* Rupee 54.49/50 per dollar (54.47/48)
* 10-year bond yield 8.17 pct (8.17 pct)
* 5-year OIS rate 7.08 pct (7.06 pct)
* 1-year OIS rate 7.66 pct (7.64 pct)
* Call money 7.85/7.90 pct Fri close (7.95/8.00
pct)

OVERNIGHT NEWS
* India has set a share sale in state miner NMDC Ltd
for Wednesday, the company said, in a deal which
sources said could add up to $1.1 billion to government efforts
to ease its yawning budget deficit.
* Bharti Infratel Ltd, the telecommunications tower arm of
top Indian mobile carrier Bharti Airtel, said it will
allot shares worth $120 million to cornerstone investors as part
of its up to $832 million initial public offering.

* The Reserve Bank of India (RBI) net sold $95 million in
the spot forex market in October, compared with $10 million in
the previous month, data from the central bank showed.

KEY FACTORS/EVENTS TO WATCH
* Banking reforms bill is likely to be voted in India's
parliament
* India's trade data for November to be released
MAJOR DEALS/ACQUISITIONS
* Rural Electrification Corp has extended the deadline for
its request for proposals for a $150 million three-year term
loan.
* Larsen & Toubro said it had achieved financial closure on
two road expansion projects in Maharashtra on Nov. 30.

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
54.66-70 54.69 54.87 54.71 High

FII INVESTMENTS-EQUITIES (Net dollars)

Dec. 10* $128.04 mln#
Month-to-date** $1.24 bln
Year-to-date** $21.02 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Dec. 10 on
SEBI website.
#(As per Reuters conversion, $1 = 54.515 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Dec. 7 $154.34 mln
Month-to-date -$235.44 mln
Year-to-date $6.09 bln
* Source: Data as per custodial filing as on Dec. 10 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Dec. 10
Foreign Banks 1.52 bln
Public Sector Banks 4.25 bln
Private Sector Banks -2.40 bln
Mutual Funds 0.35 bln
Others -0.58 bln
Primary Dealers -3.14 bln
Source: Clearing Corp of India Ltd
MONEY MARKET INFLOWS
INSTRUMENT PAYMENT DATE AMOUNT (IN MLN RUPEES)
SDL 06.67%, 2012 Redemption Dec 11 3,044.77
(ANDHRA PRADESH)
8.15% 2022 Interest Dec 11 23,635.00
SDL 06.35%, 2013 Interest Dec 12 2,223.02
(28 States)
SDL 06.95%, 2018 Interest Dec 12 260.63
(TAMIL NADU)
SDL 07.00%, 2018 Interest Dec 12 247.81
(3 States)
SDL 07.02%, 2018 Interest Dec 12 246.46
(PUNJAB)
SDL 07.03%, 2018 Interest Dec 12 790.88
(2 States)
SDL 07.10%, 2018 Interest Dec 12 532.50
(ANDHRA PRADESH)
6.05% 2019 Interest Dec 12 3327.50
6.17% 2023 Interest Dec 12 4319.00
8.83% 2041 Interest Dec 12 25607.00
SDL 08.74%, 2021 Interest Dec 14 152.95
(PUNJAB)
7.17% 2015 Interest Dec 14 20076.00
91 days T-Bill Redemption Dec 14 95370.00
364 days T-Bill Redemption Dec 14 40000.00
For full table:

WEEKLY GOVERNMENT AUCTIONS
MATURITIES DATE AMOUNT (In rupees)
OMO Dec. 11 120 bln
T-Bills Dec. 12 100 bln
LIQUIDITY
* The Reserve Bank of India said on Monday it accepted all
29 bids for 907.90 billion rupees at its one-day repo auction,
through which it injects liquidity into the banking system. It
said it accepted the sole bid for 10 billion at its reverse repo
auction through which it absorbs liquidity from the system.

* Indian banks' refinancing with RBI falls to 220.76 billion
rupees.
* Indian banks' cash balances with RBI falls to 2.77
trillion rupees.

(Compiled by Subhadip Sircar and Archana Narayanan)