Indian FX/debt factors to watch - Dec 14

Fri Dec 14, 2012 8:14am IST

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GLOBAL MARKETS ROUNDUP
    * Asian shares snapped a week-long winning streak on Friday,
tracking global equities lower on concerns that U.S. lawmakers
are still too far apart to avert a fiscal crisis with an
end-of-year deadline looming. 
    *  The yen remained in the doldrums on Friday as investors
continued to give it a wide berth on expectations the Bank of
Japan would print more money next week to stimulate the world's
third biggest economy. 
    *  Oil prices fell on Thursday as worries about the economic
impact of a U.S. fiscal crisis overshadowed improvements in U.S.
jobs data and retail sales. 
    *  U.S. debt prices slid on Thursday after an auction of
30-year bonds saw cautious bidding in the wake of U.S. Federal
Reserve monetary policy easing the previous day, with
better-than-expected jobs data also eroding Treasuries' safe
haven appeal. 

    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 19,229.26 points (-0.65 pct)
    * NSE index 5,851.50 points (-0.62 pct)
    * Rupee 54.46/47 per dollar (54.32/33)
    * 10-year bond yield 8.16 pct (8.18 pct) 
    * 5-year OIS rate 7.10 pct (7.09 pct) 
    * 1-year OIS rate 7.66 pct (7.67 pct) 
    * Call money 8.00/8.10 pct (8.05/8.10 pct)
    
    OVERNIGHT NEWS
    *  Indian inflation probably picked up in November as a weak
currency pushed up the price of imported fuel, adding to the
challenges facing a central bank torn between fighting rising
prices and an economic slowdown, a Reuters poll showed.
 
    *  India approved a new policy to encourage investment in
urea manufacturing, a senior minister told reporters on
Thursday, a move likely to expedite $6.5 billion in projects
that have been held back and to reduce the country's reliance on
imports. 
    * India's cabinet approved the creation of a special panel
on Thursday with watered-down powers to speed up the notoriously
slow implementation of big-ticket infrastructure projects.
 
    *  Indian stocks are expected to climb to a record high by
the end of next year based on expected interest rate cuts and
the government's resolve to press on with reforms, a Reuters
poll showed. 
    * The Indian cabinet approved a 30 percent cut in the
reserve price of mobile phone airwaves in four telecommunication
zones, a minister said on Thursday, after carriers shunned last
month's auction in those zones saying the prices were too high.
 
    * Indian companies directly invested $2.31 billion overseas
in November, higher than $2.03 billion a month earlier, data
from the central bank showed on Thursday. 
    
   KEY FACTORS/EVENTS TO WATCH
    * India finance ministry conference on reviving economic
growth. (0400GMT)            
    * India November WPI inflation. (0630GMT)
    
    MAJOR DEALS/ACQUISITIONS
    * The $300 million six-year term loan for GAIL (India),
formerly Gas Authority of India, garnered close to $150 million
in commitments in general syndication. (IFR)
    * Chartered Hotels obtained a 1.176 billion rupees (US$22m)
11.5-year term loan arranged by mandated lead arranger and
bookrunner Kotak Mahindra. (IFR)

    USD/INR NDFs (NY closing prices)  
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume 
    54.78-82    54.72     54.81    54.64      High

    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Dec. 13*                 $230.92 mln#
    Month-to-date**            $2.20 bln 
    Year-to-date**            $21.98 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Dec. 13 on
SEBI website.
    #(As per Reuters conversion, $1 = 54.435 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Dec. 12                 $20.79 mln
    Month-to-date          -$83.42 mln
    Year-to-date             $6.25 bln                    
    * Source: Data as per custodial filing as on Dec. 13 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Dec. 13
    Foreign Banks                       -1.29 bln
    Public Sector Banks                -13.25 bln
    Private Sector Banks                 1.94 bln
    Mutual Funds                         4.15 bln 
    Others                              -5.83 bln
    Primary Dealers                     14.27 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)
SDL 07.33%, 2015         Interest   Dec 17            132.36 
(KERALA)
For full table: 
    
    LIQUIDITY
    * The Reserve Bank of India said on Thursday it accepted all
27 bids for 811.55 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 50 million at its reverse repo
auction through which it absorbs liquidity from the system.
 
    * Indian banks' refinancing with RBI unchanged at 232.46
billion rupees. 
    * Indian banks' cash balances with RBI fall to 2.8 trillion
rupees. 

 (Compiled by Subhadip Sircar)
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