Indian FX/debt factors to watch - Dec 12
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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DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.
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