Indian FX/debt factors to watch - Dec 18

Tue Dec 18, 2012 8:28am IST

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GLOBAL MARKETS ROUNDUP
    * Asian shares crept higher on Tuesday, tracking the
overnight gains in U.S. stocks on optimism for progress in
resolving the U.S. budget crisis before the year-end deadline.
 
    * The yen steadied in early Asian trade on Tuesday after
skidding to its lowest level against the U.S. dollar in over a
year and a half in the previous session, while the euro held its
ground on hope of progress in the U.S. "fiscal cliff"
impasse. 
    * Brent crude prices dipped on Monday while U.S. oil futures
rose as news of a key U.S. pipeline expansion will be completed
next month and optimism about a deal to avoid the "fiscal cliff"
prompted spread trading between the two contracts. 
    * U.S. Treasuries prices fell on Monday as greater optimism
lawmakers in Washington will reach a deal to avert a fiscal
crunch reduced demand for safe haven debt. 

    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 19,244.42 (-0.38 pct)
    * NSE index 5,857.90 (-0.37 pct)
    * Rupee 54.84/86 per dollar (54.4850/4950)
    * 10-year bond yield 8.14 pct (8.14 pct) 
    * 5-year OIS rate 7.10 pct (7.11 pct) 
    * 1-year OIS rate 7.62 pct (7.62 pct) 
    * Call money 8.05/8.10 pct (8.00/8.10 pct)
    
    OVERNIGHT NEWS
    * The Indian economy has at least another year of
poor-quality GDP growth ahead of it, even if the pace of
expansion is somewhat faster than the 5.5 percent expected for
2012. 
    * The Reserve Bank of India on Monday allowed property
developers to borrow money overseas through external commercial
borrowing (ECB) for funding low-cost housing projects.
 
        
    KEY FACTORS/EVENTS TO WATCH
    * The Reserve Bank of India will release its mid-quarter
review of the monetary policy. Most economists expect the
central bank to hold off on cutting rates but are divided in
their view over a cut in the banks' cash reserve ratio. Decision
due at 0530 GMT.
    * The Reserve Bank of India (RBI) Deputy Governor Subir
Gokarn will be at two events in the afternoon post the central
bank's mid-quarter monetary policy review is released. The
events are at 0800 and 1100 GMT.
      
    MAJOR DEALS/ACQUISITIONS
    * Gulf carrier Etihad Airways, seeking to widen operations
in India and other Asian markets, is in the final stages of
talks to buy part of either Jet Airways or grounded
rival Kingfisher Airlines, an Indian government
official said on Monday. 

    USD/INR NDFs (NY closing prices)  
    * For up-to-date prices, double click 
      Close      Open      High     Low      Volume 
    55.04-09    55.10     55.17    55.04    Moderate

    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Dec. 17*                 $104.81 mln#
    Month-to-date**            $2.56 bln 
    Year-to-date**            $22.34 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Dec. 17 on
SEBI website.
    #(As per Reuters conversion, $1 = 54.8 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Dec. 14                 $34.06 mln
    Month-to-date           $98.86 mln
    Year-to-date             $6.43 bln                    
    * Source: Data as per custodial filing as on Dec. 17 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Dec. 17
    Foreign Banks                       10.76 bln
    Public Sector Banks                -19.98 bln
    Private Sector Banks                10.90 bln
    Mutual Funds                         5.34 bln 
    Others                               6.46 bln
    Primary Dealers                    -13.50 bln
    Source: Clearing Corp of India Ltd
    
    MONEY MARKET INFLOWS 
INSTRUMENT               PAYMENT    DATE     AMT (IN MLN RUPEES)
SDL 08.39%, 2017         Interest   Dec 19            314.63 
(2 States) 
SDL 08.40%, 2017         Interest   Dec 19            126.00 
(2 States) 
SDL 08.41%, 2017         Interest   Dec 19            378.45 
(PUNJAB) 
SDL 08.42%, 2017         Interest   Dec 19             86.66 
(4 States) 
SDL 08.43%, 2017         Interest   Dec 19            210.75 
(MADHYA PRADESH) 
SDL 08.58%, 2017         Interest   Dec 19            131.73 
(JAMMU & KASHMIR) 
SDL 08.45%, 2017         Interest   Dec 20            380.25 
(2 States) 
SDL 08.46%, 2017         Interest   Dec 20            211.50 
(RAJASTHAN) 
SDL 08.48%, 2017         Interest   Dec 20            440.79 
(3 States) 
SDL 08.49%, 2017         Interest   Dec 20            265.31 
(MADHYA PRADESH) 
SDL 08.52%, 2017         Interest   Dec 20            170.83 
(ASSAM) 
SDL 08.57%, 2017         Interest   Dec 20             42.85 
(JAMMU & KASHMIR) 
SDL 08.89%, 2022         Interest   Dec 20            711.20 
(2 States) 
SDL 08.90%, 2022         Interest   Dec 20             89.00 
(JHARKHAND) 
SDL 08.91%, 2022         Interest   Dec 20            356.40 
(HARYANA) 
SDL 08.92%, 2022         Interest   Dec 20            669.00 
(UTTAR PRADESH) 
SDL 08.95%, 2022         Interest   Dec 20            223.75 
(WEST BENGAL) 
For full table: 
    
    LIQUIDITY
    * The Reserve Bank of India said on Monday it accepted all
41 bids for 1.46 trillion rupees at its one-day repo auction,
through which it injects liquidity into the banking system. It
said it also accepted the sole bid for 100 million rupees at its
reverse repo auction through which it absorbs liquidity from the
system. 
    * Indian banks' refinancing with RBI rises to 242.26 billion
rupees. 
    * Indian banks' cash balances with RBI at 2.78 trillion
rupees. 

 (Compiled by Swati Bhat)
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