Indian FX/debt factors to watch - Dec 19

GLOBAL MARKETS ROUNDUP
* Asian shares rose and the euro hovered around multi-month
highs on Wednesday as signs of progress in resolving the U.S.
"fiscal cliff" budget crisis boosted demand for riskier assets.

* Brent futures held steady above $108 a barrel on
Wednesday, tracking a rally in most other risk assets on
expectations a budget crisis in the United States will be
resolved, saving the world's top oil consumer from slipping into
recession.
* U.S. Treasury yields rose to their highest since October
on Tuesday as U.S. President Barack Obama and Republican
lawmakers edged closer to a deal to avert a fiscal crisis in
early 2013.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 19,364.75 (0.63 pct)
* NSE index 5,896.80 (0.66 pct)
* Rupee 54.85/86 per dollar (54.84/86)
* 10-year bond yield 8.15 pct (8.14 pct)
* 5-year OIS rate 7.13 pct (7.10 pct)
* 1-year OIS rate 7.66 pct (7.62 pct)
* Call money 8.05/8.10 pct (8.05/8.10 pct)

OVERNIGHT NEWS
* The Indian parliament cleared a path for more foreign
investment in the banking sector by approving a bill to increase
shareholders' voting rights, after dropping a controversial
clause allowing banks to trade in commodity futures.

* India's parliament will not vote during this session on a
long-awaited insurance bill aimed at raising the foreign
investment cap to 49 percent from 26 percent in the industry,
Finance Minister P. Chidambaram said on Tuesday.
* India's central bank announced a much-awaited open market
purchase of government bonds soon after a deputy governor
assured that it will conduct such operation if the liquidity
deficit in banking system persists.

KEY FACTORS/EVENTS TO WATCH
* SEBI Chairman U.K. Sinha at an event in Mumbai.

MAJOR DEALS/ACQUISITIONS
* India's Mahindra & Mahindra will buy Navistar
International Corp's stakes in the automakers' two joint
ventures in the country, in a $33 million deal as the troubled
U.S. truckmaker looks to dump its underperforming businesses.

* Reliance Power promoters will sell a 5.42% stake in the
company in an offer for sale on Wednesday, but news of the
secondary share sale received only a cool response, given the
overall weak outlook for the power sector. (IFR)

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
55.20-24 55.20 55.28 55.18 Moderate

FII INVESTMENTS-EQUITIES (Net dollars)

Dec. 18* $168.00 mln#
Month-to-date** $2.73 bln
Year-to-date** $22.51 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Dec. 18 on
SEBI website.
#(As per Reuters conversion, $1 = 54.9 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Dec. 17 $28.07 mln
Month-to-date $126.93 mln
Year-to-date $6.46 bln
* Source: Data as per custodial filing as on Dec. 18 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Dec. 18
Foreign Banks -8.04 bln
Public Sector Banks 7.89 bln
Private Sector Banks 2.14 bln
Mutual Funds -1.65 bln
Others 6.27 bln
Primary Dealers -6.61 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:

ISSUANCES
ASSET DATE AMOUNT (IN RUPEES)
T-bills Dec. 19 100 bln
Dated bonds Dec. 21 120 bln
LIQUIDITY
* The Reserve Bank of India said on Monday it accepted all
43 bids for 1.52 trillion rupees at its one-day repo auction,
through which it injects liquidity into the banking system. It
said it did not get any bids at its reverse repo auction through
which it absorbs liquidity from the system.
* Indian banks' refinancing with RBI falls to 241.51 billion
rupees.
* Indian banks' cash balances with RBI rise to 3.26 trillion
rupees.

(Compiled by Swati Bhat)