Indian FX/debt factors to watch - Dec 28

GLOBAL MARKETS ROUNDUP
* The yen hit its lowest level in more than two years on
Friday as expectations of drastic monetary easing intensify,
underpinning Japanese equities, while Asian shares were capped
by worries the United States may run out of time to avoid a
fiscal crunch.
* The yen's spiral continued on Friday, with the Japanese
currency registering a more than two-year low against the
dollar and a 17-month nadir versus the euro in early Asian
trading on expectations of more stimulus steps from the
country's new government.
* Oil prices eased in choppy trading on Thursday, buffeted
by unresolved U.S. budget talks and the possibility that looming
tax increases and spending cuts could push the top oil-consuming
economy into recession.
* U.S. Treasury debt prices rose on Thursday on safe-haven
buying after the Senate majority leader hinted a federal budget
deal was unlikely before a year-end deadline, raising chances of
a burdensome package of tax hikes and spending cuts next
year.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 19,323.80 (-0.48 pct)
* NSE index 5,870.10 (-0.6 pct)
* Rupee 54.93/94 per dollar (54.835/845)
* 10-year bond yield 8.11 pct (8.11 pct)
* 5-year OIS rate 7.15 pct (7.16 pct)
* 1-year OIS rate 7.63 pct (7.63 pct)
* Call money 8.00/8.10 pct (8.10/8.15 pct)

KEY FACTORS/EVENTS TO WATCH
* RBI bond sale, OMO purchases.
* RBI to release forex reserves, bank lending data at
1130GMT.

OVERNIGHT NEWS
* Indian states will borrow 550-600 billion rupees
($10.02-10.93 billion) from the market through state development
loans in the January-March quarter, the Reserve Bank of India
said on Thursday.

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
55.18-21 55.21 55.33 55.21 Moderate

FII INVESTMENTS-EQUITIES (Net dollars)

Dec. 27* $24.20 mln#
Month-to-date** $4.43 bln
Year-to-date** $24.21 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Dec. 27 on
SEBI website.
#(As per Reuters conversion, $1 = 54.9550 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Dec. 26 -$13.77 mln
Month-to-date $380.05 mln
Year-to-date $6.71 bln
* Source: Data as per custodial filing as on Dec. 27 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Dec. 27
Foreign Banks 6.29 bln
Public Sector Banks -15.58 bln
Private Sector Banks -1.80 bln
Mutual Funds 9.45 bln
Others -0.20 bln
Primary Dealers 1.85 bln
Source: Clearing Corp of India Ltd

MONEY MARKET INFLOWS
INSTRUMENT PAYMENT DATE AMT (IN MLN RUPEES)
91 days T-Bill Redemption Dec 28 77597.90
364 days T-Bill Redemption Dec 28 40020.00
SDL 09.38%, 2018 Interest Dec 31 375.20
(WEST BENGAL)
SDL 09.40%, 2018 Interest Dec 31 235.00
(ANDHRA PRADESH)
SDL 09.59%, 2018 Interest Dec 31 479.50
(UTTAR PRADESH)
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 Thursday it
accepted all 45 bids for 1.3 trillion rupees at its one-day repo
auction, through which it injects cash into the banking system.
It accepted all 3 bids for 2.45 billion rupees at its one-day
reverse repo auction.
* Indian banks' refinancing with RBI falls to 219.10 billion
rupees.
* Indian banks' cash balances with RBI rise to 3.08 trillion
rupees.

(Compiled by Subhadip Sircar)