Indian FX/debt factors to watch - Jan 3

Thu Jan 3, 2013 8:32am IST

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GLOBAL MARKETS ROUNDUP
    * Many Asian stocks were set to start Thursday with mild
gains while oil eased following the previous session's rally as
investors look ahead to negotiations on the U.S. debt limit and
spending cuts. 
    * The yen bounced after hitting a 29-month low versus the
dollar on Thursday, having come under pressure earlier after
U.S. lawmakers forged a deal to avoid huge tax increases and
spending cuts, fueling demand for riskier investments. 
    * Brent crude slipped below $112 a barrel on Thursday as
investors' focus shifted from a deal to avert the U.S. "fiscal
cliff" to rising oil supply and more budget battles ahead in
Washington. 
    *  U.S. benchmark 10-year Treasury yields hit a more than
three-month high on Wednesday after lawmakers approved a deal
that prevented a round of automatic budget cuts and tax hikes
that could have tipped the world's largest economy into
recession. 

    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 19,714.24 (+0.68 pct)
    * NSE index 5,993.25 (+0.71 pct)
    * Rupee 54.35/36 per dollar (54.68/69)
    * 10-year bond yield 7.99 pct (7.99 pct) 
    * 5-year OIS rate 7.11 pct (7.10 pct) 
    * 1-year OIS rate 7.58 pct (7.59 pct) 
    * Call money 8.00/8.05 pct (8.00/8.05 pct)
    
    KEY FACTORS/EVENTS TO WATCH
    * The Reserve Bank of India Governor Duvvuri Subbarao to
deliver the welcome address at the C.D. Deshmukh Memorial
Lecture at 6 p.m. local time (1230 GMT).
    
    OVERNIGHT NEWS
    * India's central bank has asked that volume and value
restrictions be placed on gold imports by banks and agencies
such as MMTC to help rein in a current account gap
which touched an all-time high in the July-September quarter.
 
    * India's record current 
account deficit is "worrying," Finance Minister P. Chidambaram
said on Wednesday, and hinted at cutting gold imports to bolster
weak external accounts that have brought back memories of a 1991
currency crisis. 
    
    MAJOR DEALS/ACQUISITIONS
    * ArcelorMittal, the world's biggest steelmaker,
will sell a 15 percent stake in one of its Canadian iron ore
operations, raising $1.1 billion to help pay off debt at a time
of sluggish demand. 
    * Air India finally closed its much-awaited. Rs 74 bln
(US$1.3bn) 19-year bond sale in late December. (IFR)
    * Tata Power yesterday priced a Rs2.10bn (US$38.6m) 10-year
bullet bond at 9.40 percent. Standard Chartered is the arranger.
(IFR)
    * Jindal Saw has raised Rs5bn from a two tranche deal paying
a coupon of 10.65 percent. The three- and four-year deal was
arranged by SBI Caps. (IFR)
    
    USD/INR NDFs (NY closing prices)   
    * For up-to-date prices, double click  
      Close      Open      High     Low      Volume  
    54.47-52    54.55     54.51    54.40    Moderate
    
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Jan. 2*                  $203.61 mln#
    Month-to-date**          $308.25 mln 
    Year-to-date**           $308.20 mln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Jan. 2 on SEBI
website.
    #(As per Reuters conversion, $1 = 54.40 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Jan. 1                  $48.70 mln
    Month-to-date          $115.28 mln
    Year-to-date           $115.30 mln                    
    * Source: Data as per custodial filing as on Jan. 2 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Jan. 2
    Foreign Banks                       -2.09 bln
    Public Sector Banks                 14.58 bln
    Private Sector Banks               -20.44 bln
    Mutual Funds                        -5.35 bln 
    Others                              11.88 bln
    Primary Dealers                      1.42 bln
    Source: Clearing Corp of India Ltd
          
    MONEY MARKET INFLOWS
Instrument               Payment    Date           Amount 
                                               (mln rupees)
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
SDL 08.38%, 2021         Interest   Jan 05            209.50 
(GUJARAT) 
SDL 08.39%, 2020         Interest   Jan 05            262.19 
(TAMIL NADU) 
SDL 08.39%, 2021         Interest   Jan 05            587.30 
(2 States) 
SDL 08.42%, 2021         Interest   Jan 05            201.70 
(JAMMU & KASHMIR)
For the entire table click on: 
    
    LIQUIDITY
    * The Reserve Bank of India (RBI) said on Wednesday it
accepted all 38 bids for 986.30 billion rupees at its one-day
repo auction, through which it injects cash into the banking
system. It also accepted both bids received for 12.70 billion
rupees at its reverse repo auction, through which it absorbs
cash from the system. 
    * Indian banks' refinancing with RBI falls to 224.44 billion
rupees. 
    * Indian banks' cash balances with RBI rises to 3.03
trillion rupees. 

 (Compiled by Swati Bhat)
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