Indian FX/debt factors to watch - Jan 2

GLOBAL MARKETS ROUNDUP
* Asian stocks started new year trading with tentative gains
as investors anxiously wait to see if the U.S. Congress can
strike a last-minute compromise and avert the harsh "fiscal
cliff" tax rises and spending cuts that are technically already
in force.
* The safe haven dollar fell on Wednesday as the U.S. House
of Representatives seemed to take a step closer to striking a
last-minute deal to avoid triggering a fiscal crunch that could
threaten the global economy.
* Brent crude rose on Monday, closing 2012 up for the fourth
straight year after geopolitical threats to production offset
worries about flagging oil demand.
* U.S. Treasury debt prices eased on Monday with long,
30-year bonds falling over a point in price as lawmakers in
Washington came closer to reaching an agreement to avert the
"fiscal cliff."

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 19,580.81 (0.79 pct)
* NSE index 5,950.85 (0.77 pct)
* Rupee 54.68/69 per dollar (54.99/55.00)
* 10-year bond yield 7.99 pct (8.05 pct)
* 5-year OIS rate 7.10 pct (7.12 pct)
* 1-year OIS rate 7.59 pct (7.60 pct)
* Call money 8.00/8.05 pct (8.90/9.00 pct)

OVERNIGHT NEWS
* India's central bank said on Tuesday the monetary policy
department would directly report to Governor Duvvuri Subbarao
till further orders, with Subir Gokarn's term as a deputy
governor coming to a close.

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
54.92-97 55.07 55.29 54.93 Moderate

FII INVESTMENTS-EQUITIES (Net dollars)

Jan. 1* $121.58 mln#
Month-to-date (Dec)** $4.75 bln
Year-to-date (2012)** $24.55 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Jan. 1 on SEBI
website.
#(As per Reuters conversion, $1 = 54.70 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Dec. 31 $66.58 mln
Month-to-date (Dec) $379.75 mln
Year-to-date (2012) $6.86 bln
* Source: Data as per custodial filing as on Jan. 1 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Jan. 1
Foreign Banks 6.63 bln
Public Sector Banks -2.75 bln
Private Sector Banks -18.65 bln
Mutual Funds 12.40 bln
Others 8.50 bln
Primary Dealers -6.14 bln
Source: Clearing Corp of India Ltd

ISSUANCES
ASSET DATE AMOUNT (IN RUPEES)
T-Bills Jan 2 100 bln

MONEY MARKET INFLOWS
Instrument Payment Date Amount
(mln rupees)
8.24% FRB 2015 Interest Jan 02 2472.00
12.30% 2016 Interest Jan 02 8074.86
8.38% FRB 2017 Interest Jan 02 1257.00
6.25% 2018 Interest Jan 02 5277.13
5.64% 2019 Interest Jan 02 2820.00
6.35% 2020 Interest Jan 02 19367.50
8.30% 2040 Interest Jan 02 29880.00
8.07% JUL 2017 Interest Jan 03 17754.00
SDL 08.89%, 2022 Interest Jan 04 222.25
(RAJASTHAN)
SDL 08.90%, 2022 Interest Jan 04 578.50
(2 States)
SDL 08.91%, 2022 Interest Jan 04 637.07
(2 States)
SDL 08.92%, 2022 Interest Jan 04 22.30
(MEGHALAYA)
91 days T-Bill Redemption Jan 04 80000.00
182 days T-Bill Redemption Jan 04 50000.00

LIQUIDITY
* The Reserve Bank of India (RBI) said on Tuesday it
accepted all 48 bids for 1.50 trillion rupees at its one-day
repo auction, through which it injects cash into the banking
system. It also accepted all 3 bids for 24.30 billion rupees at
its reverse repo auction, through which it absorbs cash from the
system.
* Indian banks' refinancing with RBI rises to 241.64 billion
rupees.
* Indian banks' cash balances with RBI falls to 2.69
trillion rupees.

(Compiled by Swati Bhat)