September 17, 2012 / 2:48 AM / 5 years ago

Indian FX/debt factors to watch - Sept 17

GLOBAL MARKETS ROUNDUP
    * Asian stocks held steady on Monday and gold, oil and
copper hovered near multi-month highs, after markets rallied
late last week on hopes that fresh stimulus measures from the
developed world's big central banks will support flagging
growth. 
    * The dollar languished near a seven-month trough versus a
basket of major currencies in Asia, but recovered some ground
against a broadly weaker yen, which faces a central bank that
could ease monetary policy this week. 
    * Oil prices rose on Friday but settled below four-month
highs hit in the session as concerns that high energy costs
could threaten economic growth tempered hopes for stronger
demand after the Federal Reserve launched its latest economic
stimulus programme. 
    * The U.S. Treasuries market stumbled on Friday with the
30-year bond suffering its worst week in over three years, as
the Federal Reserve's latest stimulus programme raised inflation
worries and spurred investors to dump bonds. 

    LOCAL MARKETS CLOSE ON SEPT. 14
    * BSE index 18,464.27 points (up 2.46 pct) 
    * NSE index 5,577.65 points (up 2.62 pct)
    * Rupee 54.30/31 per dollar (55.43/44)
    * 10-year bond yield 8.18 pct (8.17 pct)
    * 5-year OIS rate 7.21 pct (7.19 pct)
    * 1-year OIS rate 7.73 pct (7.73 pct)
    * Call money 8.00/8.05 pct (8.00/8.05 pct)

    OVERNIGHT NEWS
    * There were quiet celebrations in the offices of Indian
Prime Minister Manmohan Singh late last week after he stunned
the country with a slew of steps to revive the tanking economy. 
See Analysis. 
    * A spate of long-delayed reforms unleashed by India to
shore up government finances is unlikely to be rewarded by an
immediate interest rate cut, with the central bank expected to
hold rates steady on Monday as it wages a protracted battle with
inflation. 
    * Indian Prime Minister Manmohan Singh warned that a
prolonged policy logjam could slow economic growth to 5 percent,
a day after India unexpectedly unveiled long-delayed reforms
aimed at reviving growth and preventing a credit-rating
downgrade. 
    * India's spending on major subsidies including fuel,
fertiliser and food is likely to hit 2.4 percent of GDP in the
current fiscal year, up from 1.9 percent targeted in the federal
budget, its finance minister said on Saturday. 
    * India opened its retail sector to foreign supermarkets on
Friday, a major economic reform that has been stalled for months
by political gridlock and came as part of a package of measures
aimed at reviving growth.  
    * India decided to allow foreign airlines to buy stakes of
up to 49 percent in local carriers, a long-awaited policy move
that could provide a lifeline to the country's debt-laden
airlines by opening up a fresh source of funding.
 
    * After months of dithering on the economy, India's
beleaguered government roared back to life in dramatic fashion
on Friday, announcing big bang reforms as part of package of
measures aimed at reviving growth and staving off a ratings
downgrade. 
    * India's cabinet approved stake sales in four state
companies on Friday, restarting a stalled divestment programme
as part of a broader push to revive a reform agenda aimed at
kick-starting economic growth and shoring up public finances. 
 
                     
    KEY EVENTS TO WATCH
    * RBI to release mid-quarter policy review at 0530GMT.
                                                 
    MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS
    * Russia's Sistema is close to buying Indian
telecom company Aircel for $3 billion, the Economic Times
reported. (link.reuters.com/gar62t)
 
    * Hindalco Industries, which is part of the Aditya Birla
Group, will be signing its 90 billion rupees ($1.6 billion)
eight-year loan on Monday (September 17). The loan, which pays
11.25 percent interest, is jointly bookrun by IDBI Bank and SBI
Capital Markets. (IFR)
           
    USD/INR NDFs (NY closing prices) 
    * For up-to-date prices, double click 
    Close       Open    High     Low      Volume
    54.05-10   54.54   54.55    54.07      High  
    
    FII INVESTMENTS-EQUITIES (Net dollars)         
                                        
    Sept 14*                $520.81 mln#
    Month-to-date**         $520.62 mln
    Year-to-date**           $12.82 bln         
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Sept 14 on
SEBI website.
    #(As per Reuters conversion, $1 = 54.415 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *  
                              Debt             
    Sept. 13                $11.38 mln
    Month-to-date         -$185.78 mln
    Year-to-date             $4.49 bln                    
    * Source: Data as per custodial filing as on Sept. 14 on
SEBI website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Sept 14
    Foreign Banks                       10.41 bln
    Public Sector Banks                -18.52 bln
    Private Sector Banks                 2.00 bln
    Mutual Funds                         8.80 bln 
    Others                               2.21 bln
    Primary Dealers                     -4.91 bln
    Source: Clearing Corp of India Ltd
    
    BOND INTEREST/REDEMPTIONS  (in mln rupees)    
SDL 07.20%, 2017         Interest   Sep 17            155.95 
(2 States) 
SDL 08.36%, 2021         Interest   Sep 17           1167.27 
(3 States) 
SDL 08.37%, 2021         Interest   Sep 17            230.18 
(ANDHRA PRADESH) 
SDL 08.38%, 2021         Interest   Sep 17            523.75 
(2 States) 
SDL 08.39%, 2021         Interest   Sep 17             73.56 
(2 States) 
SDL 08.42%, 2021         Interest   Sep 17            195.77 
(HIMACHAL PRADESH) 
SDL 08.40%, 2019         Interest   Sep 18           1199.03 
(3 States) 
SDL 08.43%, 2019         Interest   Sep 18            210.75 
(HIMACHAL PRADESH) 
SDL 08.45%, 2019         Interest   Sep 18            211.25 
(KERALA) 
SDL 08.46%, 2019         Interest   Sep 18            250.67 
(RAJASTHAN) 
SDL 08.49%, 2019         Interest   Sep 18           1238.27 
(KARNATAKA) 
SDL 08.55%, 2019         Interest   Sep 18            145.98 
(2 States) 
SDL 08.59%, 2019         Interest   Sep 18           1936.62 
(2 States) 
SDL 08.14%, 2017         Interest   Sep 21            203.50 
(TAMIL NADU) 
SDL 08.16%, 2017         Interest   Sep 21            122.40 
(HIMACHAL PRADESH) 
SDL 08.19%, 2017         Interest   Sep 21            178.54 
(KERALA) 
SDL 08.20%, 2017         Interest   Sep 21            288.33 
(3 States) 
SDL 08.22%, 2017         Interest   Sep 21            411.00 
(PUNJAB) 
SDL 08.50%, 2017         Interest   Sep 21             57.17 
(JAMMU & KASHMIR) 
SDL 08.65%, 2021         Interest   Sep 21            778.50 
(4 States) 
SDL 08.66%, 2021         Interest   Sep 21           1082.50 
(2 States) 
SDL 09.02%, 2022         Interest   Sep 21            150.18 
(2 States) 
SDL 09.03%, 2022         Interest   Sep 21            285.80 
(2 States) 
SDL 09.04%, 2022         Interest   Sep 21            113.00 
(NAGALAND) 
8.13% 2022               Interest   Sep 21          28656.33 
8.28% 2027               Interest   Sep 21          15008.43 
8.33% 2032               Interest   Sep 21            634.11 
91 days T-Bill           Redemption Sep 21         105245.00 
364 days T-Bill          Redemption Sep 21          30000.00 

For full table, see 
 
           
    LIQUIDITY, as of Sept. 14
    * The Reserve Bank of India (RBI) on Friday accepted all 21
bids for 551.2 billion rupees at its three-day repo auction,
through which it injects liquidity into the banking system. It
said it did not get any bids at the reverse repo auction.
 
    * Indian banks' refinancing with RBI rises to 75.65 bln
rupees. 
    * Indian banks' cash balances with RBI fall to 3.15 trln
rupees. 

 (Compiled by Subhadip Sircar)

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