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Indian FX/debt factors to watch - Feb 3
February 3, 2014 / 2:32 AM / 4 years ago

Indian FX/debt factors to watch - Feb 3

GLOBAL MARKETS ROUNDUP
    * Asian shares were slowly giving ground on Monday as
strains in emerging markets show little sign of abating, while
growing pressure for another policy easing in Europe shoved the
euro to 10-week lows. 
    * The euro licked its wounds near a 10-week low against the
dollar on Monday after soft euro zone inflation data rekindled
speculation the European Central Bank may ease policy to stave
off deflation. 
    * Oil prices fell on Friday, with Brent posting its biggest
monthly loss in four months, on worries over the outlook for
emerging economies and fallout over the U.S. Federal Reserve's
decision to continue tapering its stimulus program. 
    * U.S. Treasuries prices rose on Friday with benchmark
yields falling to their lowest level in over two months on
lingering troubles in emerging market economies, leading
safe-haven bonds to notch their strongest gains in 20 months in
January. 
                    
    LOCAL MARKETS PREVIOUS CLOSE
    * BSE index 20,513.85 (up 0.08 pct)
    * NSE index 6,089.50 (up 0.26 pct)
    * Rupee 62.68/69 per dlr (62.56/57)
    * 10-year bond yield 8.77 pct (8.82 pct)  
    * 5-year OIS rate 8.42 pct (8.45 pct) 
    * 1-year OIS rate 8.70 pct (8.69 pct) 
    * Call money 8.80/8.90 pct (7.50/7.60 pct)
    
    KEY FACTORS/EVENTS TO WATCH
    * India will release January Manufacturing PMI (0500 GMT)
    * The Reserve Bank of India will auction 130 billion rupees
of treasury bills, including 70 billion rupees of 91-day bills
and 60 billion rupees of 364-day bills on Feb. 5.
 
    * India's government hopes to raise at least $1.8 billion
from an auction of mobile phone spectrum, which opens on Monday.
                            
    OVERNIGHT NEWS
    * The Indian state of Rajasthan has barred foreign direct
investment in supermarkets, an ominous sign for global retailers
who covet India's vast but fragmented retail sector if the
country's main opposition Bharatiya Janata Party (BJP) comes to
power nationally in upcoming elections. 
    * The United States should be more aware of how its policies
affect the rest of the world, India's central bank chief said on
Friday, a day after complaining that global monetary policy
coordination had broken down. 
    * The International Monetary Fund urged central banks on
Friday to ensure that a financial market rout in the developing
world does not lead to an international funding crunch.
 
    * India revised down its economic growth for the fiscal year
2012/13 to 4.5 percent from 5.0 percent, the government data
showed on Friday, on lower than provisionally estimated output
in farm and manufacturing sectors. 
    * India's top power producer NTPC Ltd said on
Saturday it might cut supplies to a company that distributes
electricity to parts of New Delhi, something that could plunge
the heart of India's capital into darkness. 
    * Indian Oil Corp Ltd (IOC), the country's biggest
refiner, said it would raise retail prices for diesel by 1
percent, or 0.57 rupees (1 cent), from Saturday in line with a
plan to gradually align them with international prices.
 
    * U.S. authorities have downgraded India's aviation safety
rating, citing a lack of safety oversight, meaning the country's
carriers cannot increase flights to the world's biggest aviation
market and face extra checks for existing ones. 
    * The power sector regulator in the Indian capital has
approved a 6-8 percent surcharge on power purchase costs by
electricity distribution companies, a notice on the regulator's
website said on Friday. 
    * Delhi Chief Minister Arvind Kejriwal on Friday named a
string of high-ranking Indian politicians he described as
corrupt and said his anti-graft Aam Aadmi Party (AAP) would
target them in an upcoming general election. 
    
    LOANS/DEALS
    * Indian utility Tata Power Co Ltd said it had
agreed to sell its 30 percent stake in coal mining firm PT
Arutmin Indonesia to Indonesia's Bakrie Group for $500 million.
 
    * Tata Power is planning a rights issue of around 20 billion
rupees and may launch in February, local media reported. BNP
Paribas, HSBC and JM Financial will manage the issue. 

    
    USD/INR NDFs (NY closing prices) 
    For up-to-date prices, double click 
     Close      Open     High      Low     Volume        
    62.95-98   63.03    63.30     62.93     High
             
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Jan. 31*                -$104.19 mln
    Month-to-date**          $124.63 mln
    Year-to-date**           $124.60 mln
    * Provisional NSE data         
    ** Source: Data as per the latest custodial filing as on
Jan. 31 on SEBI website.
    #(As per Reuters conversion, $1 = 62.6750 rupees) 
             
    FII INVESTMENTS-DEBT (Net Dollars)  *   
                                    Debt             
    Jan. 30                      -$29.40 mln
    Month-to-date                  $2.06 bln
    Year-to-date                   $2.06 bln
    * Source: Data as per latest custodial filing as on Jan. 31
on SEBI website.
       
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Jan. 31
    Foreign Banks                        3.79 bln
    Public Sector Banks                 -4.17 bln
    Private Sector Banks                10.63 bln
    Mutual Funds                        -2.39 bln
    Others                               8.04 bln
    Primary Dealers                    -15.90 bln
    Source: Clearing Corp of India Ltd
    

    LIQUIDITY
    * The Reserve Bank of India said on Friday it accepted all
52 bids for 315.61 billion rupees ($5.04 billion) at its
three-day repo auction through which it injects liquidity into
the banking system. 
    * Indian banks' refinancing with RBI falls to 449.66 billion
rupees. 
    * Indian banks' cash balances with RBI decline to 3.16
trillion rupees. 
 
 ($1 = 62.6750 rupees)

 (Compiled by Abhishek Vishnoi)

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