Indian FX/debt factors to watch - Dec 13

Thu Dec 13, 2012 8:12am IST

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GLOBAL MARKETS ROUNDUP
    * Asian shares extended gains for a seventh day on Thursday,
after the U.S. Federal Reserve took new stimulus steps to
bolster the economy, putting the yen under pressure as
expectations grow for more aggressive easing from the Japanese
central bank next week. 
    * The yen languished at eight-month lows against the dollar
and euro on Thursday as markets expect the Bank of Japan to
expand its own easing programme after the Federal Reserve
surprised by explicitly linking policy to unemployment. 
 
    * Oil prices rose sharply on Wednesday, with Brent crude
pushing toward $110 a barrel after the U.S. Federal Reserve
announced plans for more monetary stimulus, while a Texas
refinery fire lifted refined product futures. 
    * Treasuries prices fell on Wednesday, with 30-year bonds
falling particularly sharply, after the Federal Reserve
announced a new bond-buying programme that shifts more of its
purchases to the five-year sector. 

    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 19,355.26 points (-0.16 pct)
    * NSE index 5,888 points (-0.18 pct)
    * Rupee 54.32/33 per dollar (54.26/27)
    * 10-year bond yield 8.18 pct (8.18 pct) 
    * 5-year OIS rate 7.09 pct (7.08 pct) 
    * 1-year OIS rate 7.67 pct (7.66 pct) 
    * Call money 8.05/8.10 pct (8.00/8.10 pct)
    
    OVERNIGHT NEWS
    * India's Gujarat state will hold a potentially
game-changing vote on Thursday that could help decide whether
Chief Minister Narendra Modi or Rahul Gandhi, scion of the
Nehru-Gandhi dynasty, becomes India's next prime minister.
 
    * The Indian central bank wants non-bank lenders to set
aside more capital for lending in stock and real estate sectors
and to improve the quality of liquid assets they hold to reduce
systemic risk from the sector. 
    * The Indian government is expected to notify on reducing
withholding tax on rupee-denominated infrastructure bonds soon,
the Reserve Bank of India Deputy Governor H.R. Khan said.
 
 
   KEY FACTORS/EVENTS TO WATCH
    * Key Gujarat state goes to the polls.
    * Indian Prime Minister at telecoms event.
    * Indian cabinet to discuss airwave auction reserve price
(1130GMT)
    * India chief economic adviser Rajan at press briefing.
(0630GMT)
            
    MAJOR DEALS/ACQUISITIONS
    * India raised $1.1 billion selling a stake in miner NMDC
Ltd in a fillip for its efforts to rein in a widening
fiscal deficit through sales of state assets. 
    * Power Finance Corp which has been working on an offshore
deal for a year and half is still looking for the best price.
The company is looking to print its US$500m deal by early next
week, Satnam Singh, company's chairman said. (IFR)
     
    USD/INR NDFs (NY closing prices)  
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume 
    54.42-47    54.53     54.61    54.30      High

    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Dec. 12*                 $175.68 mln#
    Month-to-date**            $1.64 bln 
    Year-to-date**            $21.42 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Dec. 12 on
SEBI website.
    #(As per Reuters conversion, $1 = 54.245 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Dec. 11                 $76.99 mln
    Month-to-date         -$104.21 mln
    Year-to-date             $6.23 bln                    
    * Source: Data as per custodial filing as on Dec. 12 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Dec. 12
    Foreign Banks                       -4.57 bln
    Public Sector Banks                 14.70 bln
    Private Sector Banks                -1.27 bln
    Mutual Funds                         1.55 bln 
    Others                              -0.87 bln
    Primary Dealers                     -9.53 bln
    Source: Clearing Corp of India Ltd
        MONEY MARKET INFLOWS 
INSTRUMENT               PAYMENT    DATE  AMOUNT (IN MLN RUPEES)
 
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: 
    
    LIQUIDITY
    * The Reserve Bank of India said on Wednesday it accepted
all 22 bids for 733.35 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 1 billion at its
reverse repo auction through which it absorbs liquidity from the
system. 
    * Indian banks' refinancing with RBI rises to 232.46 billion
rupees. 
    * Indian banks' cash balances with RBI fall to 3 trillion
rupees. 

 (Compiled by Subhadip Sircar)
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