Indian FX/debt factors to watch - Jan 31

GLOBAL MARKETS ROUNDUP
* Asian shares pulled back from recent rallies on Thursday
but optimism about global growth supported sentiment as the
Federal Reserve kept its stimulus policy, while the euro
steadied on signs the region was stabilising from the debt
crisis.
* The euro held near a 14-month peak against the dollar and
a 2-1/2 year high versus the yen on Thursday, having risen
solidly as investors expect central banks in both the United
States and Japan to keep an aggressive easing stance.
* Brent crude touched a three-month high on Wednesday after
better-than-expected economic data out of Europe spurred
optimism about the global economy before oil pared gains with
surprisingly weak U.S. growth numbers.
* U.S. Treasury debt prices traded little changed on
Wednesday after the Federal Reserve said economic growth will
proceed at a moderate pace and unemployment will gradually
decline under appropriate monetary policy.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 20,005.00 (+0.07)
* NSE index 6,055.75 (+0.10)
* Rupee 53.30/31 per dollar (53.76/77)
* 10-year bond yield 7.89 pct (7.85 pct)
* 5-year OIS rate 7.25 pct (7.17 pct)
* 1-year OIS rate 7.62 pct (7.57 pct)
* Call money 7.75/7.85 pct (7.95/8.05 pct)

FACTORS TO WATCH
* India will release fiscal deficit figures for
April-December period around 3.00 IST (10.30 GMT).
* India is likely to release the infrastructure output data
for December on Thursday or Friday for which no date or timing
is fixed. The data is usually released on the last working day.
* Parthasarathi Shome, who headed a panel to suggest
recommendations in controversial tax issues and is currently an
advisor to Finance Minister P Chidambaram, will be at an
industry event in New Delhi on Thursday. Events starts at 0730
GMT.

OVERNIGHT NEWS
* India's government does not currently plan additional
taxes or curbs on imports of gold as it waits to see the impact
of recent tax hikes, a top finance ministry official told
Reuters on Wednesday.

MAJOR DEALS/ACQUISITIONS
* State-owned NHPC will open its three-tranche issue of up
to INR15bn (USD280m) today at 10am India time for bidding. The
company has invited 16 arrangers to bid for the sale which will
close at 3pm India time on January 31.
* Indian conglomerate Reliance Industries (Baa2/BBB) last
night printed the first US dollar senior perpetual bond out of
India and at a yield of 5.875 percent also achieved the lowest
coupon for a rated US dollar perp in Asia to date. (IFR)

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
53.43-49 53.60 53.64 53.45 High

FII INVESTMENTS-EQUITIES (Net dollars)

Jan. 30* $170.05 mln#
Month-to-date** $3.83 bln
Year-to-date** $3.83 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Jan. 30 on
SEBI website.
#(As per Reuters conversion, $1 = 53.30 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Jan. 29 -$19.56 mln
Month-to-date $609.06 mln
Year-to-date $609.10 mln
* Source: Data as per custodial filing as on Jan. 30 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Jan. 30
Foreign Banks -24.89 bln
Public Sector Banks 26.25 bln
Private Sector Banks -16.94 bln
Mutual Funds 5.44 bln
Others 4.84 bln
Primary Dealers 5.40 bln
Source: Clearing Corp of India Ltd

MONEY MARKET INFLOWS (mln rupees)
Instrument Payment Date Amount
SDL 06.20%, 2013 Interest Jan 30 2476.60
(28 States)
SDL 06.35%, 2013 Interest Jan 30 1987.01
(19 States)
SDL 07.76%, 2019 Interest Jan 30 388.00
(KARNATAKA)
SDL 07.77%, 2019 Interest Jan 30 388.50
(2 States)
For the entire table click on:

ISSUANCES
Instrument Amount Date
Dated bonds 120 bln rupees Feb. 1

LIQUIDITY
* The RBI said on Wednesday it accepted all 42 bids for 1.04
trillion rupees at its one-day repo auction, through which it
injects cash into the banking system. It said it did not get any
bids at its reverse repo auction, through which it absorbs cash
from the system.
* Indian banks' refinancing with RBI rises to 207.97 billion
rupees.
* Indian banks' cash balances with RBI rise to 3.12 trillion
rupees.

(Compiled by Swati Bhat)