Indian FX/debt factors to watch - Feb 4

GLOBAL MARKETS ROUNDUP
* Asian shares edged higher on Monday, buoyed by U.S. data
which maintained expectations for a mild recovery and continued
loose Federal Reserve monetary policy to support it, bolstered
by solid manufacturing data from Europe and China.
* The listless yen bounced back a tad from a 2 1/2-year low
against the dollar on Monday as option-related buying prompted
short-term players to give up a further test of the yen downside
for now.
* Brent crude rose to a four-month peak on Friday, with
traders citing optimism about the global economic recovery,
while Brent's premium over U.S. oil futures widened nearly $1 a
barrel in heavy spread trading.
* The U.S. 10-year Treasury yield hit a nine-month high on
Monday after jobs and manufacturing data on Friday showed the
U.S. economy's recovery remained on track and helped lift
equities to five-year highs.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 19,781.19 (-0.57 pct)
* NSE index 5,998.90 (-0.59 pct)
* Rupee 53.19/20 per dollar (53.215/225)
* 10-year bond yield 7.91 pct (7.91 pct)
* 5-year OIS rate 7.27 pct (7.26 pct)
* 1-year OIS rate 7.63 pct (7.63 pct)
* Call money 7.75/7.85 pct on Fri (7.75/7.85 pct)

OVERNIGHT NEWS
* Anglo-Dutch oil major Royal Dutch Shell Plc said
its Indian unit has been in talks with local authorities over a
tax dispute, making it the latest global company to have a
run-in with tax officials in the country.
* India's central bank is considering cutting the
held-to-maturity (HTM) ratio for lenders starting in April,
while also looking into bond purchases via open market
operations in the next two months to improve liquidity, a top
official said on Saturday.
* A technology glitch at India's Religare Capital Markets
caused "unintended transactions", the brokerage said on
Saturday, a day after deeply discounted sale of large blocks of
shares in Tata Motors and UltraTech Cement
hit the markets.
* India's central bank plans to introduce three to four
gold-linked products in the next few months, in an effort to
bring 20,000 tonnes of gold held in households into the banking
system, but the measure is unlikely to cut bullion imports
sharply, a senior official said.

MAJOR DEALS/ACQUISITIONS
* India's GAIL Ltd is teaming up with a unit of
French group EDF to jointly scout for natural gas
assets in the United States as demand in India grows, its
chairman said.
* India raised $585 million through a share sale in state
explorer Oil India Ltd on Friday, an encouraging sign
for the government's efforts to divest stakes in other state
firms to bridge its fiscal deficit.
* ONGC Videsh, a unit of explorer Oil and Natural Gas Corp,
will make its US$900m debut in the US dollar bond market in late
February to fund an acquisition in Azerbaijan. (IFR)
* Bharti Airtel, India's top mobile network operator, hopes to
issue dollar bonds of up to US$1bn in the fiscal year that ends
March 31, Sarvjit Dhillon, group CFO at Bharti Enterprises, told
Reuters. (IFR)
* Chambal Fertilisers & Chemicals, one of the largest private
sector fertiliser companies in India, has sent out RFPs for a
US$830m project financing. (IFR)

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
53.32-38 53.40 53.52 53.30 Mod

FII INVESTMENTS-EQUITIES (Net dollars)

Feb. 1* $143.45 mln#
Month-to-date** $195.57 mln
Year-to-date** $4.25 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Feb. 1 on SEBI
website.
#(As per Reuters conversion, $1 = 53.19 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Jan. 31 $129.77 mln
Month-to-date $129.77 mln
Year-to-date $680.80 mln
* Source: Data as per custodial filing as on Feb. 1 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Feb. 1
Foreign Banks -11.19 bln
Public Sector Banks 1.09 bln
Private Sector Banks 3.15 bln
Mutual Funds 11.55 bln
Others 12.66 bln
Primary Dealers -17.27 bln
Source: Clearing Corp of India Ltd

MONEY MARKET INFLOWS (mln rupees)
Instrument Payment Date Amount
SDL 08.31%, 2020 Interest Feb 04 332.40
(GUJARAT)
SDL 08.32%, 2020 Interest Feb 04 1180.40
(4 States)
SDL 08.34%, 2020 Interest Feb 04 625.50
(MAHARASHTRA)
SDL 08.37%, 2020 Interest Feb 04 502.20
(UTTAR PRADESH)
SDL 08.39%, 2020 Interest Feb 04 827.97
(2 States)
SDL 08.40%, 2020 Interest Feb 04 404.25
(ASSAM)
SDL 08.42%, 2020 Interest Feb 04 210.50
(JAMMU & KASHMIR)
SDL 08.44%, 2020 Interest Feb 04 79.34
(SIKKIM)
SDL 06.60%, 2013 Redemption Feb 04 11578.30
(3 States)
SDL 07.32%, 2015 Interest Feb 05 91.50
(KERALA)
SDL 07.95%, 2017 Interest Feb 05 79.50
(JAMMU & KASHMIR)
SDL 07.95%, 2019 Interest Feb 05 596.25
(2 States)
SDL 07.99%, 2019 Interest Feb 05 799.00
(MAHARASHTRA)
SDL 08.01%, 2019 Interest Feb 05 190.00
(JHARKHAND)
SDL 08.02%, 2019 Interest Feb 05 802.00
(WEST BENGAL)
SDL 08.03%, 2019 Interest Feb 05 602.25
(UTTAR PRADESH)
SDL 07.24%, 2019 Interest Feb 06 236.74
(3 States)
SDL 07.26%, 2019 Interest Feb 06 435.60
(TAMIL NADU)
SDL 07.27%, 2019 Interest Feb 06 834.23
(2 States)
SDL 07.29%, 2019 Interest Feb 06 364.50
(RAJASTHAN)
For full table:

 ISSUANCES
Instrument Amount Date
State loans 76.70 bln rupees Feb. 5
T-Bills 100 bln rupees Feb. 6

LIQUIDITY
* The RBI said on Friday it accepted all 38 bids for 1.09
trillion rupees at its three-day repo auction, through which it
injects cash into the banking system. It said it received no
bids at its reverse repo auction, through which it absorbs cash
from the system.
* Indian banks' refinancing with RBI falls to 192 billion
rupees.
* Indian banks' cash balances with RBI down to 2.99 trillion
rupees.

(Compiled by Subhadip Sircar)