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MARKET EYE WEEKAHEAD-India debt/fx markets await inflation data
March 7, 2014 / 12:32 PM / 4 years ago

MARKET EYE WEEKAHEAD-India debt/fx markets await inflation data

* Indian foreign exchange and debt markets will await inflation
data next week for direction as the RBI is set to review policy
on April 1. 
* Traders say CPI is broadly expected to be close to 9 percent,
with any number significantly below that expected to spark a
rally in debt and the rupee. 
* Cash conditions will also be key, given advance tax outflows
in mid-March, although traders do not expect OMO bond purchases
by the RBI. 
* The benchmark 10-year government bond is seen
moving in a 8.75 to 8.90 percent range next week while the rupee
 is expected to hold in a 60.50 to 62.00 range, with
strong resistance for the rupee expected at around 60.90 levels.
    
    KEY FACTORS/EVENTS TO WATCH
Wed: January industrial output 
     Manufacturing output 
     Feb consumer price inflation 
Fri: Feb wholesale price inflation
     Foreign exchange reserves

 (swati.bhat@thomsonreuters.com/;
swati.bhat.thomsonreuters.com@reuters.net)

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