Indian FX/debt factors to watch - Feb 21

GLOBAL MARKETS ROUNDUP
* Asian shares fell and the Australian dollar eased on
Thursday as risk sentiment was shaken by talk in global markets
overnight that a hedge fund had been liquidating large positions
in commodities, as well as worries the Federal Reserve could
slow its bond buying programme.
* The U.S. dollar held firm on Thursday, having enjoyed its
biggest one-day gain in seven months against a currency basket
as commodities and U.S. equities slid on rumours of a hedge fund
in trouble.
* Crude oil posted its biggest daily fall so far in 2013 on
Wednesday, joining a sell-off in precious metals and copper as
market rumours circulated that a hedge fund was forced to
liquidate substantial commodity positions.
* U.S. Treasury debt prices rose on Wednesday, even after
records of the Federal Reserve's January meeting showed
policymakers discussed the slowing or stopping of Fed bond
purchases that are aimed at reducing unemployment.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 19,642.75 (0.04 pct)
* NSE index 5,943.05 (0.06 pct)
* Rupee 54.075/085 per dollar (54.185/195)
* 10-year bond yield 7.80 pct (7.82 pct)
* 5-year OIS rate 7.26 pct (7.26 pct)
* 1-year OIS rate 7.64 pct (7.63 pct)
* Call money 7.85/7.95 pct (7.90/7.95 pct)

FACTORS TO WATCH
* The budget session of parliament begins with the
President's speech at 1100 IST (0530 GMT), which coincides with
the second day of a nationwide strike by trade unions angry with
the government's inaction on price rise and alleged violation of
labour laws.
* Sri Lanka central bank governor Ajith Nivard Cabraal,
Colombo Stock Exchange Chairman Krishan Balendra, and Securities
and Exchange Commission of Sri Lanka Chairman Nalaka Godahewa to
be in Mumbai for an "Invest Sri Lanka" forum. They will give a
media briefing at 12 pm (0630 GMT).

OVERNIGHT NEWS
* India's auction of quotas allowing foreign investors to
buy bonds attracted solid demand, reflecting expectations that
the central bank will cut interest rates and that the government
will deliver a fiscally disciplined budget.
* Indian banks' advances continued to limp at the end of 10
months of the financial year 2012-13 compared with a year
earlier, but bankers expect a late demand from corporates and
loans to the farm sector to prop up growth before the year-end
on March 31.

MAJOR DEALS/ACQUISITIONS
* Malaysia's AirAsia Bhd, Asia's largest budget
carrier, plans to launch a regional airline in India in a
venture with the Tata group, marking a return to aviation for
India's biggest business house.

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
54.59-63 54.40 54.60 54.37 High

FII INVESTMENTS-EQUITIES (Net dollars)

Feb. 20* $80.15 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. 20 on
SEBI website.
#(As per Reuters conversion, $1 = 54.10 rupees)

FII INVESTMENTS-DEBT (Net Dollars) *
Debt
Feb. 18 -$57.82 mln
Month-to-date $97.62 mln
Year-to-date $648.70 mln
* Source: Data as per custodial filing as on Feb. 20 on SEBI
website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Feb. 20
Foreign Banks 33.43 bln
Public Sector Banks -26.75 bln
Private Sector Banks 6.32 bln
Mutual Funds -13.56 bln
Others -5.34 bln
Primary Dealers 5.90 bln
Source: Clearing Corp of India Ltd

MONEY MARKET INFLOWS (mln rupees)
Instrument Payment Date Amount
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:

LIQUIDITY
* The RBI said on Wednesday it accepted all 34 bids for 1.22
trillion rupees at its one-day repo auction, through which it
injects cash into the banking system. It also accepted the sole
bid for 400 million rupees at its reverse repo auction, through
which it absorbs cash from the system.
* Indian banks' refinancing with RBI rises to 209.67 billion
rupees.
* Indian banks' cash balances with RBI rise to 2.87 trillion
rupees.

(Compiled by Swati Bhat)