Indian FX/debt factors to watch - Feb 12

GLOBAL MARKETS ROUNDUP
* The yen hovered near fresh lows against the dollar and
Japanese stocks jumped on Tuesday after a U.S. official voiced
support for Japan's drive to beat deflation, assuaging fears
that criticism of its aggressive stance on monetary policy would
mount.
* The euro rallied from nearly three-week lows against the
dollar on Monday after a European Central Bank policymaker said
Europe's shared currency was not overvalued at current
levels.
* Brent crude oil futures fell on Monday, with gasoline
futures leading losses after last week's blizzard in the U.S.
Northeast, one of the world's biggest gasoline markets, is
expected to have had little impact on regional fuel supplies.

* U.S. Treasuries dipped slightly but remained within recent
ranges on Monday before new Treasury supply this week and a day
ahead of President Barack Obama's State of the Union address,
which will be watched for any signs of a deal on spending
cuts.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 19,460.57 (-0.12 pct)
* NSE index 5,897.85 (-0.10 pct)
* Rupee 53.8450/8550 per dollar (53.50/51)
* 10-year bond yield 7.86 pct (7.84 pct)
* 5-year OIS rate 7.26 pct (7.23 pct)
* 1-year OIS rate 7.63 pct (7.60 pct)
* Call money 7.80/7.85 pct (7.80/7.85 pct)

FACTORS TO WATCH
* India will release industrial output data for December
around 0530 GMT.
* India will release CPI inflation data around 11.00 IST
(0530 GMT).

OVERNIGHT NEWS
* India's current account deficit is likely to reach a
record high in the fiscal year that ends in March, its central
bank governor warned, a gap which the bank said previously
needed to shrink for it to cut interest rates further.

MAJOR DEALS/ACQUISITIONS
* India-based Cipla Ltd has put on hold a $215
million bid for control of South African generic drug firm Cipla
Medpro, the chairman of the Indian drug maker said.

* Bank of India is hoping to raise up to $500
million in dollar bonds, and is expected to meet investors in
Europe and Asia later this month, two sources with direct
knowledge of the deal said.

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
54.18-23 53.90 54.27 54.12 High

FII INVESTMENTS-EQUITIES (Net dollars)

Feb. 11* $185.10 mln#
Month-to-date** $3.52 bln
Year-to-date** $7.58 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Feb. 11 on
SEBI website.
#(As per Reuters conversion, $1 = 53.80 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Feb. 8 -$280.59 mln
Month-to-date -$46.71 mln
Year-to-date $504.30 mln
* Source: Data as per custodial filing as on Feb. 11 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Feb. 11
Foreign Banks -3.05 bln
Public Sector Banks 7.36 bln
Private Sector Banks -3.91 bln
Mutual Funds -2.32 bln
Others 4.48 bln
Primary Dealers -2.56 bln
Source: Clearing Corp of India Ltd

MONEY MARKET INFLOWS (mln rupees)
Instrument Payment Date Amount
10.47% 2015 Interest Feb 12 3366.11
SDL 06.00%, 2013 Interest Feb 14 150.00
(2 States)
SDL 06.02%, 2013 Interest Feb 14 75.25
(KERALA)
SDL 06.03%, 2013 Interest Feb 14 150.75
(ANDHRA PRADESH)
8.20% 2022 Interest Feb 15 23629.26
8.24% 2027 Interest Feb 15 23644.08
8.28% 2032 Interest Feb 15 32576.46
91 days T-Bill Redemption Feb 15 112228.80
182 days T-Bill Redemption Feb 15 50000.00
For full table:

ISSUANCES
Instrument Amount Date
Tbills 100 bln rupees Feb. 13
Dated bonds 120 bln rupees Feb. 15

LIQUIDITY
* The RBI said on Monday it accepted all 37 bids for 1.09
trillion rupees at its one-day repo auctions, 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 201.89 billion
rupees.
* Indian banks' cash balances with RBI rise to 2.90 trillion
rupees.

(Compiled by Swati Bhat)