Indian FX/debt factors to watch - Dec 31

Mon Dec 31, 2012 8:18am IST

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GLOBAL MARKETS ROUNDUP
    * Financial markets across Asia and Western Europe were
either closed or closing early on Monday, abandoning the field
as the U.S. Congress and the White House battled it out for a
solution to the impending "fiscal cliff". 
    *  The yen held above a two-year low versus the dollar on
Monday but remained on track for its largest annual drop in
seven years, pressured by expectations for more forceful
monetary easing by the Bank of Japan. 
    *  Oil prices settled lower on Friday after U.S. data showed
a sharp rise in gasoline inventories and as investors worried
that U.S. budget negotiators may not reach a deal in time to
avert a fiscal crisis that could erode oil demand. 
    *   U.S. benchmark Treasury debt prices rose for a third
consecutive session on Friday on safe-haven buying as hopes
faded for a deal to avoid tax hikes and spending cuts that could
throw the U.S. economy back into recession. 

    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 19,444.84 (0.63 pct)
    * NSE index 5,908.35 (0.65 pct)
    * Rupee 54.7550/7650 per dollar (54.93/94)
    * 10-year bond yield 8.11 pct (8.11 pct) 
    * 5-year OIS rate 7.14 pct (7.15 pct) 
    * 1-year OIS rate 7.62 pct (7.63 pct) 
    * Call money 7.90/7.95 pct (8.00/8.10 pct)
            
    KEY FACTORS/EVENTS TO WATCH
    * RBI to release current account, balance of payments data
for Sept. quarter. (1130GMT)
    * Fiscal deficit, infrastructure data for November.
    
    OVERNIGHT NEWS
    *  India will start implementing new global capital rules
for banks, known as Basel III, from April 1, 2013 rather than
the beginning of January, the Reserve Bank of India said on
Friday. 
    * India will borrow a total of 1.4 trillion rupees ($25.48
billion) between January and March by selling treasury bills,
the finance ministry said in a statement on Friday.
 
    * Risks to India's macro-economic stability have increased
on the back of an economic slowdown, high inflation, and
ballooning fiscal and current account deficits, the Reserve Bank
of India said in a report on Friday. 

    USD/INR NDFs (NY closing prices)   
    * For up-to-date prices, double click  
      Close      Open      High     Low      Volume  
    55.15-20    55.12     55.21    55.13    Moderate 
 
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Dec. 28*                 $151.98 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. 28 on
SEBI website.
    #(As per Reuters conversion, $1 = 54.81 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Dec. 27               -$162.86 mln
    Month-to-date          $217.19 mln
    Year-to-date             $6.55 bln                    
    * Source: Data as per custodial filing as on Dec. 28 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Dec. 28
    Foreign Banks                        6.46 bln
    Public Sector Banks                -18.30 bln
    Private Sector Banks                 3.01 bln
    Mutual Funds                         5.97 bln 
    Others                               6.08 bln
    Primary Dealers                     -3.22 bln
    Source: Clearing Corp of India Ltd
    
    MONEY MARKET INFLOWS 
INSTRUMENT               PAYMENT    DATE     AMT (IN MLN RUPEES)
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)
T-Bills               Jan 2        100 bln              
    
    LIQUIDITY
    * The Reserve Bank of India (RBI) said on Friday it accepted
all 72 bids for 1.4 trillion rupees at its three-day repo
auctions, through which it injects cash into the banking system.
It accepted all 7 bids for 22.45 billion rupees at its three-day
reverse repo auction. 
    * Indian banks' refinancing with RBI falls to 213.31 billion
rupees. 
    * Indian banks' cash balances with RBI fall to 2.91 trillion
rupees. 

 (Compiled by Subhadip Sircar)
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