Indian FX/debt factors to watch - Jan 3

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)