Indian FX/debt factors to watch - Dec 12

Wed Dec 12, 2012 8:16am IST

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GLOBAL MARKETS ROUNDUP
    *  Asian shares rose as strong overnight performances in
global equities and firmer economic sentiment in Germany buoyed
sentiment, while the dollar was pressured ahead of the outcome
of the U.S. Federal Reserve's policy meeting later in the day. 
 
    * The dollar wallowed at three-month lows against the
Australian currency and remained broadly under pressure on
Wednesday as markets geared up for more stimulus from the
Federal Reserve. 
    *  Oil futures rose modestly on Tuesday after OPEC said its
members pumped less oil last month and as a weaker U.S. currency
helped to firm dollar-denominated commodity prices.  
    *  U.S. Treasuries fell on Tuesday as investors saw signs of
hope in budget talks in Washington and in the German economy,
ahead of expected easing announcement from the Federal Reserve
on Wednesday at the conclusion of its two-day meeting. 

    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 19,387.14 points (-0.12 pct)
    * NSE index 5,898.80 points (-0.17 pct)
    * Rupee 54.26/27 per dollar (54.49/50)
    * 10-year bond yield 8.18 pct (8.17 pct) 
    * 5-year OIS rate 7.08 pct (7.08 pct) 
    * 1-year OIS rate 7.66 pct (7.66 pct) 
    * Call money 8.00/8.10 pct (7.85/7.90 pct)
    
    OVERNIGHT NEWS
    * U.S.-led talks in New Zealand on a free trade deal for the
Asia-Pacific region have made some progress but have a long way
to go to reach a pact to dismantle entrenched trade barriers by
the end of next year, the negotiators said on Wednesday.
 
    * The Indian government's wide fiscal deficit and a heavy
debt burden are the most "significant rating constraints" to the
country's sovereign rating, Standard & Poor's said, reiterating
its warning that India faces a one-in-three chance of being
downgraded to junk over the next 24 months. 
    
   KEY FACTORS/EVENTS TO WATCH
    * October industrial output data around 0530 GMT.
    * India November retail inflation data around 0530 GMT.
    * India govt looking to raise about $1 billion by divesting
stake in state miner NMDC.
    * India parliament watched for fate of banking reforms bill.
    * RBI deputy governor HR Khan at industry event at 1130 GMT.
    
    MAJOR DEALS/ACQUISITIONS
    * India's state oil companies intend to press ahead with
plans to buy stakes in Canada's oil sands and believe they will
not run afoul of tougher Canadian rules on foreign ownership of
the sector. 
   * Kingfisher Airlines said on Tuesday it was in
talks with Abu Dhabi's Etihad Airways and other investors about
taking a stake in the grounded and indebted Indian carrier.
 
   * BT is selling its 9.1 percent stake in Tech Mahindra
 in a deal expected to raise about $183 million and see
the British telecoms operator exit an Indian IT services group
it co-founded more than two decades ago. 
    *  India's Credit Analysis and Research (CARE) has
received bids for more than 40 times the number of shares on
offer in a stock market debut set to raise up to $99 million.
 
   * India's ICICI Bank Ltd (Dubai branch), rated
Baa2/BBB-/BBB-, has priced its CHF100m 2.75% 7 January 2020
seven year at a par issue/reoffer price today. Sole lead
Deutsche Bank was earlier marketing the debut bond in the
currency at mid swaps plus 228bp area. (IFR)
 
    USD/INR NDFs (NY closing prices)  
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume 
    54.61-64    54.59     54.65    54.60      High

    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Dec. 11*                 $241.09 mln#
    Month-to-date**            $1.38 bln 
    Year-to-date**            $21.16 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Dec. 11 on
SEBI website.
    #(As per Reuters conversion, $1 = 54.295 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Dec. 10                 $54.24 mln
    Month-to-date         -$181.20 mln
    Year-to-date             $6.15 bln                    
    * Source: Data as per custodial filing as on Dec. 11 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Dec. 11
    Foreign Banks                        2.52 bln
    Public Sector Banks                  5.79 bln
    Private Sector Banks                -1.57 bln
    Mutual Funds                         5.35 bln 
    Others                              -5.99 bln
    Primary Dealers                     -6.10 bln
    Source: Clearing Corp of India Ltd
        MONEY MARKET INFLOWS 
INSTRUMENT               PAYMENT    DATE  AMOUNT (IN MLN RUPEES)
 
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 
SDL 07.39%, 2015         Interest   Dec 15            805.93 
(10 States) 
SDL 07.81%, 2016         Interest   Dec 15            132.77 
(2 States) 
SDL 07.89%, 2016         Interest   Dec 15             65.67 
(ASSAM) 
SDL 07.93%, 2016         Interest   Dec 15            320.68 
(2 States) 
SDL 07.94%, 2016         Interest   Dec 15            180.81 
(2 States) 
SDL 07.99%, 2016         Interest   Dec 15             76.93 
(JHARKHAND)

For full table: 
    
    WEEKLY GOVERNMENT AUCTIONS 
MATURITIES                 DATE          AMOUNT (In rupees)   
T-Bills                   Dec. 12             100 bln
    
    LIQUIDITY
    * The Reserve Bank of India said on Tuesday it accepted all
25 bids for 828.05 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 20 billion at its reverse repo
auction through which it absorbs liquidity from the system.
 
    * Indian banks' refinancing with RBI rises to 231.86 billion
rupees. 
    * Indian banks' cash balances with RBI rise to 3.05 trillion
rupees. 

 (Compiled by Subhadip Sircar)
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