Indian FX/debt factors to watch - Jan 23

GLOBAL MARKETS ROUNDUP
* Asian shares nudged higher on Wednesday following gains
in Wall Street overnight, with upbeat U.S. earnings and
improving German investor sentiment encouraging buying of
riskier assets.
* The yen held firm on Wednesday, having posted its biggest
one-day gain in around eight months on the greenback as
investors cut bearish bets on the currency following the Bank of
Japan's latest move to spur the economy.
* Oil prices rose on Tuesday, supported by Bank of Japan
plans for asset buying and strong investor confidence data from
Germany that boosted the outlook for fuel demand.
* U.S. Treasuries prices rose on Tuesday, erasing earlier
losses, after weaker housing data raised concerns about the
strength of the economic recovery, and as investors focused on
negotiations in Washington over raising the U.S. debt ceiling.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 19,981.57 (-0.6 pct)
* NSE index 6,048.50 (-0.56 pct)
* Rupee 53.81/82 per dollar (53.765/775)
* 10-year bond yield 7.85 pct (7.86 pct)
* 5-year OIS rate 7.12 pct (7.13 pct)
* 1-year OIS rate 7.53 pct (7.54 pct)
* Call money 8.05/8.10 pct (8.00/8.10 pct)

FACTORS TO WATCH
* RBI to auction 100 bln rupees of treasury bills.

OVERNIGHT NEWS
* Chief executives are less optimistic about short-term
growth prospects for their companies than a year ago, according
to a survey that offers a reality check on rising stock markets.

* The Indian central bank has allowed exporters to access
the foreign exchange market without having to first exhaust
funds in their foreign currency accounts, reversing a previous
restriction imposed to prevent a sharp fall in the rupee.

* The Reserve Bank of India has urged banks to offer more
long-term fixed-rate loan products in contrast to the current
bias of lenders towards floating-rate products, to protect
borrowers from interest rate fluctuations.
* India more than doubled duties on gold alloy on Tuesday,
hard on the heels of a tariff rise for refined gold, as New
Delhi tries to curb demand in the world's biggest bullion
importer and rein in a record current account deficit.

* India's economy will grow "no better than" 5.7 percent in
the current fiscal year but will regain traction in 2013/2014,
the finance minister said on Tuesday, committing to fiscal
prudence in the budget and brushing off threats of a downgrade.

MAJOR DEALS/ACQUISITIONS
* British Airways is in talks with India's biggest carrier,
IndiGo, over a ticketing and baggage sharing agreement, a source
with direct knowledge of the discussions said on Tuesday.

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
53.80-85 54.00 54.02 53.80 High

FII INVESTMENTS-EQUITIES (Net dollars)

Jan. 22* $194.37 mln#
Month-to-date** $2.83 bln
Year-to-date** $2.83 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Jan. 22 on
SEBI website.
#(As per Reuters conversion, $1 = 53.815 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Jan. 21 -$113.17 mln
Month-to-date $13.91 mln
Year-to-date $13.90 mln
* Source: Data as per custodial filing as on Jan. 22 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Jan. 22
Foreign Banks 9.72 bln
Public Sector Banks -19.01 bln
Private Sector Banks 20.98 bln
Mutual Funds -7.60 bln
Others 0.22 bln
Primary Dealers -4.31 bln
Source: Clearing Corp of India Ltd

MONEY MARKET INFLOWS (mln rupees)
Instrument Payment Date Amount
SDL 07.00%, 2019 Interest Jan 23 1,097.25
(3 States)
SDL 07.09%, 2019 Interest Jan 23 142.97
(2 States)
SDL 07.10%, 2019 Interest Jan 23 649.74
(2 States)
SDL 07.13%, 2019 Interest Jan 23 582.02
(ANDHRA PRADESH)
91 days T-Bill Redemption Jan 24 60044.80
364 days T-Bill Redemption Jan 24 40000.00
For the entire table click on:

ISSUANCES
PAPER AMOUNT DATE
T-Bills 100 bln rupees Jan 23

LIQUIDITY
* The Reserve Bank of India (RBI) said on Tuesday it
accepted all 33 bids for 851 billion rupees at its one-day repo
auction, through which it injects cash into the banking system.
It also accepted the sole bid for 100 million rupees at its
reverse repo auction, through which it absorbs cash from the
system.
* Indian banks' refinancing with RBI rises to 212.88 billion
rupees.
* Indian banks' cash balances with RBI fall to 2.99 trillion
rupees.

(Compiled by Subhadip Sircar)