Indian FX/debt factors to watch - Jan 17

GLOBAL MARKETS ROUNDUP
* Asian shares consolidated on Thursday as
better-than-expected U.S. earnings lifted sentiment, but
concerns over the global economic outlook and U.S. fiscal
problem capped markets.
* The euro struggled to regain its momentum on Thursday even
after a top European central banker sounded relaxed about its
recent run higher, while the yen hovered at one-week highs,
still underpinned by a wave of short-covering.
* Oil prices rose on Wednesday after an Algerian gas field
came under attack from Islamist militants and as data showed
crude stocks fell in the United States last week.
* U.S. Treasury debt prices rose on Wednesday, prompted by
bets the Federal Reserve will stick to its bond purchase
program, which aims to cut unemployment, as long as inflation
remains muted.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 19,817.63 (-0.85)
* NSE index 6,001.85 (-0.90 pct)
* Rupee 54.69/70 per dollar (54.6150/6250)
* 10-year bond yield 7.88 pct (7.83 pct)
* 5-year OIS rate 7.15 pct (7.10 pct)
* 1-year OIS rate 7.57 pct (7.49 pct)
* Call money 8.10/8.20 pct (8.05/8.10 pct)

KEY FACTORS/EVENTS TO WATCH
* The Prime Minister's Economic Advisory Council Chairman C.
Rangarajan will inaugurate a trade show on banking and will give
a speech. RBI Deputy Governor K.C. Chakrabarty will be attending
the event starting at 1000 GMT.
* Reuters to publish poll on expectations from Indian
central bank's monetary policy on Jan. 29.

OVERNIGHT NEWS
* The amount of sovereign and corporate credit on the cusp
of being downgraded to junk status more than quadrupled in 2012,
due primarily to an erosion in the credit quality of the world's
banking sector, Standard & Poor's data showed on Wednesday.

MAJOR DEALS/ACQUISITIONS
* Telecom equipment maker Alcatel-Lucent SA has
won an eight-year contract valued at more than $1 billion to
manage Reliance Communications Ltd's mobile and fixed
networks in the east and south of India.
* A company of Mukesh Ambani's Reliance Group is scouting
for a 10 billion rupees ($182 mln) bond sale. The deal is at a
preliminary stage as still price levels are being sounded to
potential arrangers. (IFR)

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
54.99-03 55.10 55.22 54.98 High

FII INVESTMENTS-EQUITIES (Net dollars)

Jan. 16* $187.90 mln#
Month-to-date** $2.13 bln
Year-to-date** $2.13 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Jan. 16 on
SEBI website.
#(As per Reuters conversion, $1 = 54.70 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Jan. 15 $151.65 mln
Month-to-date -$116.22 mln
Year-to-date -$116.20 mln
* Source: Data as per custodial filing as on Jan. 16 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Jan. 16
Foreign Banks -4.02 bln
Public Sector Banks 21.25 bln
Private Sector Banks 0.46 bln
Mutual Funds -17.25 bln
Others 6.31 bln
Primary Dealers -6.76 bln
Source: Clearing Corp of India Ltd

MONEY MARKET INFLOWS
Instrument Payment Date Amount
SDL 07.61%, 2016 Interest Jan 18 266.54
(8 States)
SDL 08.67%, 2017 Interest Jan 18 216.75
(KARNATAKA)
SDL 08.80%, 2022 Interest Jan 18 8.80
(ARUNACHAL PRADESH)
SDL 08.83%, 2022 Interest Jan 18 529.80
(GUJARAT)
SDL 08.84%, 2022 Interest Jan 18 1215.50
(3 States)
SDL 08.85%, 2022 Interest Jan 18 1508.93
(4 States)
SDL 08.88%, 2022 Interest Jan 18 444.00
(UTTAR PRADESH)
SDL 08.89%, 2022 Interest Jan 18 222.25
(JAMMU & KASHMIR)
SDL 08.91%, 2022 Interest Jan 18 668.25
(WEST BENGAL)
91 days T-Bill Redemption Jan 18 80210.00
182 days T-Bill Redemption Jan 18 50000.00
SDL 07.96%, 2017 Interest Jan 19 199.00
(TAMIL NADU)
SDL 07.99%, 2017 Interest Jan 19 285.48
(3 States)
SDL 08.52%, 2021 Interest Jan 19 213.00
(GUJARAT)
SDL 08.53%, 2021 Interest Jan 19 426.50
(ANDHRA PRADESH)
SDL 08.54%, 2021 Interest Jan 19 800.63
(MAHARASHTRA)
SDL 08.55%, 2021 Interest Jan 19 633.35
(4 States)
SDL 08.56%, 2021 Interest Jan 19 214.00
(UTTAR PRADESH)
6.83% 2039 Interest Jan 19 4439.50
For the entire table click on:

ISSUANCES
PAPER AMOUNT DATE
Dated bonds 120 bln rupees Jan. 18

LIQUIDITY
* The Reserve Bank of India (RBI) said on Wednesday it
accepted all 33 bids for 842.20 billion rupees at its one-day
repo auction, through which it injects cash into the banking
system. It also accepted the sole bid for 50 million rupees at
its reverse repo auction, through which it absorbs cash from the
system.
* Indian banks' refinancing with RBI rises to 236.31 billion
rupees.
* Indian banks' cash balances with RBI rises to 2.99
trillion rupees.

(Compiled by Swati Bhat)