Indian FX/debt factors to watch - Dec 26
GLOBAL MARKETS ROUNDUP * Expectations that Japan's incoming prime minister will pursue drastic stimulus policies to drive the country's economy out of deflation helped weaken the yen and underpinned the Nikkei on Wednesday, while Asian shares were capped in thin holiday trade. * The yen sank to a 20-month low in Asian trading on Wednesday, as Shinzo Abe prepared to assume Japan's helm with a mandate to weaken its currency and push for more drastic monetary and fiscal stimulus. * Oil prices largely recovered early losses, but still closed a hair lower on Monday as a late gasp of holiday-thinned buying failed to counter fears that the U.S. "fiscal cliff" budget crisis could erode oil demand in the world's top consumer. * Most U.S. government debt prices were little changed on Monday in light volume though the bonds continued to benefit from a safety bid on fears that U.S. lawmakers will fail to avert a package of automatic tax hikes and spending cuts that are set to take effect next year. LOCAL MARKETS PREVIOUS CLOSE * BSE index 19,255.09 (0.07 pct) * NSE index 5,855.75 (0.14 pct) * Rupee 54.95/96 per dollar (55.06/07) * 10-year bond yield 8.13 pct (8.14 pct) * 5-year OIS rate 7.17 pct (7.17 pct) * 1-year OIS rate 7.63 pct (7.67 pct) * Call money 8.05/8.15 pct (7.90/8.00 pct) KEY FACTORS/EVENTS TO WATCH * RBI to sell 100 bln rupees of t-bills. OVERNIGHT NEWS * The Reserve Bank of India will buy up to 80 billion rupees ($1.46 billion) of government bonds through open market operations (OMO) on Dec. 28, it said in a release on Monday. * India will sell 120 billion rupees ($2.18 billion) of bonds on Dec. 28, the Reserve Bank of India said in a statement on Monday. MAJOR DEALS/ACQUISITIONS * India plans to launch the request for proposal next week for the asset management company for the proposed Exchange Traded Fund for shares of listed public sector companies. (IFR) * IDBI Bank has updated and enlarged its existing US dollar MTN programme by as much as $2 billion, taking the size of the programme to $3.5 billion. The previous programme was first established on Nov. 14 in 2007. (IFR) FII INVESTMENTS-EQUITIES (Net dollars) Dec. 24* $83.69 mln# Month-to-date** $3.55 bln Year-to-date** $23.33 bln * Provisional NSE data ** Source: Data as per custodial filing as on Dec. 24 on SEBI website. #(As per Reuters conversion, $1 = 54.9650 rupees) FII INVESTMENTS-DEBT (Net Dollars) * Debt Dec. 21 $158.72 mln Month-to-date $252.38 mln Year-to-date $6.58 bln * Source: Data as per custodial filing as on Dec. 24 on SEBI website. GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees) Dec. 24 Foreign Banks 11.84 bln Public Sector Banks -24.51 bln Private Sector Banks -0.72 bln Mutual Funds 3.55 bln Others -2.24 bln Primary Dealers 12.08 bln Source: Clearing Corp of India Ltd MONEY MARKET INFLOWS INSTRUMENT PAYMENT DATE AMT (IN MLN RUPEES) 11.60% 2020 Interest Dec 27 2900.00 91 days T-Bill Redemption Dec 28 77597.90 364 days T-Bill Redemption Dec 28 40020.00 For full table: ISSUANCES ASSET DATE AMOUNT (IN RUPEES) Tbills Dec. 26 100 bln Bond Sale Dec. 28 120 bln OMOs Dec. 28 80 bln LIQUIDITY * The Reserve Bank of India (RBI) said on Monday it accepted all 45 bids for 1.5 trillion rupees at its two-day repo auction, through which it injects cash into the banking system. It said it received no bids at its two-day reverse repo auction. * Indian banks' refinancing with RBI falls to 224.17 billion rupees. * Indian banks' cash balances with RBI falls to 2.97 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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U.S. President Barack Obama ended a landmark day in India on Monday with a pledge of $4 billion in investments and loans, seeking to release what he called the "untapped potential" of a business and strategic partnership between the world's largest democracies. Full Article | Slideshow