Indian FX/debt factors to watch - Dec 26

Wed Dec 26, 2012 8:21am IST

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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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