Indian FX/debt factors to watch - Feb 20

Wed Feb 20, 2013 8:15am IST

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GLOBAL MARKETS ROUNDUP
    *   Asian shares edged higher on Wednesday, buoyed by rising
global equities overnight on an improving global economic
outlook, while the yen resumed its decline. 
    *  The yen held its ground against the dollar on Wednesday
as doubts surfaced on whether the Bank of Japan will put into
action bold plans to jumpstart the economy, while sterling
languished at a seven-month low. 
    * Oil prices rose on Tuesday as traders grew bullish amid a
rally in U.S. stock markets, even as U.S. pipeline bottlenecks
and European economic concerns threatened to weigh on oil
markets.  
    *  U.S. government debt prices fell on Tuesday as gains in
the stock market reduced the appeal of safer but low-yielding
bonds, but worries over the possible federal spending cuts and
outcome of the upcoming Italian election limited bond losses. 
 
       
    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 19,635.72 (0.69 pct)
    * NSE index 5,939.70 (0.70 pct)
    * Rupee 54.185/195 per dollar (54.22/23)
    * 10-year bond yield 7.82 pct (7.83 pct) 
    * 5-year OIS rate 7.26 pct (7.24 pct) 
    * 1-year OIS rate 7.63 pct (7.60 pct) 
    * Call money 7.90/7.95 pct (7.75/7.85 pct)
    
    FACTORS TO WATCH
    * British Prime Minister David Cameron's India visit.
    * Debt limit auction for FIIs.
    * Nationwide two-day industrial strike begins.
    * India trade minister in Mumbai. (0530 GMT)
    * Indian cabinet committee on investment meets.
                     
    OVERNIGHT NEWS
    * The scheduled 120-billion-rupee ($2.22 billion) bond
auction, which was due to be held on Feb. 22, has been
cancelled, the Indian government said in a release on Monday,
citing a build-up of its cash balance with the Reserve Bank of
India. 
    *  India's central bank will issue final guidelines on new
bank licenses before the current fiscal year ends in March,
local television news channels reported, quoting Deputy Governor
Anand Sinha. 
    *  Major Indian trade unions have called for a two-day
strike starting on Wednesday, as the beleaguered government
prepares to present an austerity budget to parliament and
weather a corruption scandal in a big arms deal. 
   * India is now paying Iran only in rupees for its oil after
it lost another payment route in euros due to tougher sanctions
from Feb. 6, sources at local refiners said, leaving Tehran
struggling to use the tightly-restricted Indian currency.
 
 
    MAJOR DEALS/ACQUISITIONS
    *  India's Reliance Industries and UK partner BP
 plan joint investment of more than $5 billion over the
next three to five years to boost declining output at a key
natural gas field off India's east coast. 
   * Indian Defence Minister A.K. Antony said on Tuesday it was
"too early" to consider the possibility of foul play in a
planned $10 billion deal with France's Dassault Aviation
 for Rafale war planes. 
   * Bank of India (BoI) may reopen the market for Indian banks
after the Lunar New Year's break which almost shut the markets
for two weeks. The bank will meet investors in Asia and Europe
on February 21-22. BoI has already completed the US leg of
investor meetings in early February. A US$500m deal is likely to
follow. (IFR)
    * Nomura has joined the US$270m seven-year loan for Manipal
Education as an equal-status arranger, according to sources. The
senior secured deal, originally mandated to Deutsche Bank and
ICICI Bank, offers a margin of 600bp over Libor. It has an
average life of 4.8 years. (IFR)

     USD/INR NDFs (NY closing prices)    
    * For up-to-date prices, double click   
      Close      Open      High     Low      Volume   
    54.41-44    54.58      54.58    54.47      High
     
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Feb. 19*                 -$33.53 mln#
    Month-to-date**            $4.02 bln 
    Year-to-date**             $8.08 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Feb. 18 on
SEBI website.
    #(As per Reuters conversion, $1 = 54.275 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Feb. 15               -$14.92 mln
    Month-to-date         $155.44 mln
    Year-to-date          $706.50 mln                    
    * Source: Data as per custodial filing as on Feb. 18 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Feb. 18
    Foreign Banks                       -3.33 bln
    Public Sector Banks                 -0.48 bln
    Private Sector Banks                10.34 bln
    Mutual Funds                         3.70 bln 
    Others                               1.63 bln
    Primary Dealers                    -11.85 bln
    Source: Clearing Corp of India Ltd
   
    MONEY MARKET INFLOWS                         (mln rupees) 
Instrument               Payment    Date              Amount  
12.40% 2013              Interest   Feb 20           7430.02
SDL 05.85%, 2015         Interest   Feb 21           1180.44
(17 States)
SDL 08.74%, 2016         Interest   Feb 22            349.60
(KARNATAKA)
SDL 08.74%, 2022         Interest   Feb 22            218.50
(KARNATAKA)
SDL 08.75%, 2022         Interest   Feb 22           1050.00
(2 States)
SDL 08.76%, 2022         Interest   Feb 22           1533.00
(2 States)
SDL 08.79%, 2022         Interest   Feb 22            190.30
(PUNJAB)
SDL 08.80%, 2022         Interest   Feb 22            616.00
(2 States)
SDL 08.88%, 2022         Interest   Feb 22            197.58
(HARYANA)
SDL 08.90%, 2022         Interest   Feb 22            400.50
(2 States)
SDL 08.91%, 2022         Interest   Feb 22            534.60
(GUJARAT)
SDL 08.92%, 2022         Interest   Feb 22            401.40
(2 States)
SDL 08.95%, 2022         Interest   Feb 22             85.03
(3 States)
SDL 08.96%, 2022         Interest   Feb 22            672.00
(WEST BENGAL)
91 days T-Bill           Redemption Feb 22          85000.00
364 days T-Bill          Redemption Feb 22          40000.00
For full table: 

    ISSUANCES
Instrument          Amount              Date
T-Bills           100   bln rupees    Feb. 20
    
    LIQUIDITY
    * The RBI said on Monday it accepted all 37 bids for 1.26
trillion rupees at its two-day repo auction, through which it
injects cash into the banking system. It also accepted both bids
for 550 million rupees at its reverse repo auction, through
which it absorbs cash from the system. 
    * Indian banks' refinancing with RBI falls to 208.96 billion
rupees. 
    * Indian banks' cash balances with RBI fall to 2.73 trillion
rupees. 

 (Compiled by Subhadip Sircar)
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