Indian FX/debt factors to watch - Dec 27

GLOBAL MARKETS ROUNDUP
* Asian shares were capped on Thursday on investor edginess
about the chances of U.S. lawmakers striking a deal to avoid a
fiscal crunch by Dec. 31, while the yen stayed under pressure on
the prospect of drastic monetary easing and massive fiscal
spending.
* The yen hit a two-year low against the dollar on Thursday,
reflecting expectations that the new government of Prime
Minister Shinzo Abe will push to weaken Japan's currency and
implement aggressive stimulus.
* U.S. oil futures rose to their highest in more than nine
weeks on Wednesday on hopes that renewed talks will prevent a
U.S. fiscal crisis, and as cold weather and technical buying
added to the upward momentum.
* U.S. Treasuries gained in price on Wednesday in light,
post-Christmas trading, on chances of new volatility over fears
about tax increases and spending cuts due to kick in as early as
next week.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 19,417.46 (0.84 pct)
* NSE index 5,905.60 (0.85 pct)
* Rupee 54.8350/8450 per dollar (54.95/96)
* 10-year bond yield 8.11 pct (8.13 pct)
* 5-year OIS rate 7.16 pct (7.17 pct)
* 1-year OIS rate 7.63 pct (7.63 pct)
* Call money 8.10/8.15 pct (8.05/8.15 pct)

KEY FACTORS/EVENTS TO WATCH
* Indian Prime Minister to finalise economic targets for
five years to 2017 at a meeting of the National Development
Council.

MAJOR DEALS/ACQUISITIONS
* * India has rejected a proposal by autos-to-software
conglomerate Mahindra & Mahindra Ltd to set up a joint
venture with Israel's Rafael Advanced Defense Systems Ltd, a
government statement said on Wednesday.
* India's cabinet approved selling a further stake in
state-run Rashtriya Chemicals & Fertilizers Ltd, a
minister said on Wednesday.

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
55.03.08 55.17 55.18 55.03 Moderate

FII INVESTMENTS-EQUITIES (Net dollars)

Dec. 26* $135.63 mln#
Month-to-date** $4.27 bln
Year-to-date** $24.05 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Dec. 26 on
SEBI website.
#(As per Reuters conversion, $1 = 54.8550 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Dec. 24 $141.44 mln
Month-to-date $393.82 mln
Year-to-date $6.72 bln
* Source: Data as per custodial filing as on Dec. 26 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Dec. 26
Foreign Banks 2.51 bln
Public Sector Banks -21.50 bln
Private Sector Banks 8.94 bln
Mutual Funds 6.89 bln
Others -2.91 bln
Primary Dealers 6.07 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)
Bond Sale Dec. 28 120 bln
OMOs Dec. 28 80 bln

LIQUIDITY
* The Reserve Bank of India (RBI) said on Wednesday it
accepted all 42 bids for 1.36 trillion rupees at its one-day
repo auction, through which it injects cash into the banking
system. It accepted both bids for 1.55 billion rupees at its
one-day reverse repo auction.
* Indian banks' refinancing with RBI falls to 222.62 billion
rupees.
* Indian banks' cash balances with RBI rise to 3.03 trillion
rupees.

(Compiled by Subhadip Sircar)