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)
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DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.
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U.S. President Barack Obama ended a landmark day in India on Monday with a pledge of $4 billion in investments and loans, seeking to release what he called the "untapped potential" of a business and strategic partnership between the world's largest democracies. Full Article | Slideshow