Indian FX/debt factors to watch - Jan 24

Thu Jan 24, 2013 8:37am IST

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GLOBAL MARKETS ROUNDUP
    * Asian shares fell on Thursday as investors were cautious
ahead of manufacturing data from China, while a sharp slide in
Apple Inc shares following its earnings report also
capped demand. 
    * The yen's rebound came to an abrupt halt on Thursday with
investors wary about cutting bearish bets further amid
expectations the Bank of Japan will come under renewed pressure
to ease policy. 
    * U.S. crude futures dropped 1.5 percent on Wednesday in
heavy trading after a key oil pipeline reduced the volume
flowing through it, raising concerns inventories at the Midwest
delivery point for the contract might swell further. 
    * U.S. Treasuries prices edged up on Wednesday after a vote
by the House of Representatives to extend the borrowing
authority under the federal debt limit to May, and as some
investors worried that growth is likely to remain tepid. 
       
    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 20,026.61 (+0.23 pct)
    * NSE index 6,054.30 (+0.10 pct)
    * Rupee 53.6650/6750 per dollar (53.81/82)
    * 10-year bond yield 7.86 pct (7.85 pct) 
    * 5-year OIS rate 7.14 pct (7.12 pct) 
    * 1-year OIS rate 7.55 pct (7.53 pct) 
    * Call money 8.00/8.10 pct (8.05/8.10 pct)
    
    FACTORS TO WATCH
    * Duvvuri Subbarao, governor of the Reserve Bank of India, 
will meet Finance Minister P Chidambaram on Thursday around 0400
IST (1030 GMT) ahead of Jan. 29 review of monetary policy. 
    
    OVERNIGHT NEWS
    * India's oil ministry will soon recommend a revision in
local gas prices, a government source said, which if accepted
would bring a windfall for state-run producers - Oil and Natural
Gas Crop and Oil India. 
    * India's central bank has barred foreign institutional
investors (FIIs) from buying shares in Pantaloon Retail Ltd
, after the company breached the overall limit of 24
percent of its paid-up capital. 
    * The chief economist at the International Monetary Fund on
Wednesday shot down the notion that easy monetary and fiscal
policies in advanced economies risk sparking a "currency war",
saying there has not been a major surge of capital into emerging
nations. 
    * Indian banks' deposit advances and deposits grew at a
slower pace in the first nine months of the financial year
2012-13 compared with a year earlier and are likely to fall
short of the central bank's projection by March-end.
 
        
    MAJOR DEALS/ACQUISITIONS
    * Dutch banking and insurance group ING is to sell
its 26 percent stake in an Indian insurance venture to local
partner Exide Industries, the second foreign insurer
to exit a competitive sector in India within a year.
 
    * Drug company Cipla Medpro is expected to demand
more than the $215 million on offer from Indian suitor Cipla Ltd
 to reflect a lucrative government contract win that
will increase its earnings power. 
    * India's telecoms services and equipment provider Tata
Communications has launched its much-anticipated Singapore
dollar deal, showing a three-year unrated Reg S at an initial
guidance of 4.625 percent. (IFR) 
    * Housing and Development Board last evening increased its
latest five-year bond to SGD 1.2 billion (USD 975.5 mln) - its
largest single tranche ever. The deal, priced at 1.23 percent,
was upsized from an initial SGD 1 billion from a SGD 300 million
greenshoe. (IFR) 
    * India's Tata Steel is planning to raise 10
billion rupees ($185.82 million) through a dual tranche bond
sale, a source with direct knowledge of the deal said on
Wednesday. 

    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Jan. 23*                 $149.46 mln#
    Month-to-date**            $3.02 bln 
    Year-to-date**             $3.02 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Jan. 23 on
SEBI website.
    #(As per Reuters conversion, $1 = 53.70 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Jan. 22               $241.75 mln
    Month-to-date         $255.66 mln
    Year-to-date          $255.70 mln                    
    * Source: Data as per custodial filing as on Jan. 23 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Jan. 23
    Foreign Banks                      -15.62 bln
    Public Sector Banks                 12.86 bln
    Private Sector Banks                 0.65 bln
    Mutual Funds                         5.16 bln 
    Others                              -1.35 bln
    Primary Dealers                     -1.70 bln
    Source: Clearing Corp of India Ltd
          
    MONEY MARKET INFLOWS                         (mln rupees)
Instrument               Payment    Date              Amount 
91 days T-Bill           Redemption Jan 24          60044.80 
364 days T-Bill          Redemption Jan 24          40000.00 
For the entire table click on: 
    
    LIQUIDITY
    * The RBI said on Wednesday it accepted all 35 bids for
955.25 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 falls to 204.58 billion
rupees. 
    * Indian banks' cash balances with RBI fall to 2.98 trillion
rupees. 

 (Compiled by Swati Bhat)
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