Indian FX/Debt Factors to Look for on Jan 8

GLOBAL MARKETS ROUNDUP


				
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    *  Asian shares steadied on Tuesday but prices were capped by investor caution ahead of corporate earnings season for the last quarter of 2012 and the European Central Bank's policy meeting later in the week. 

    * The yen bumped higher against the dollar and the euro in early Asian trading on Tuesday, as investors took profits after the Japanese unit's recent surge. 

    * Brent crude oil prices were steady above $111 a barrel on Monday while U.S. crude futures edged higher, cutting the spread between the two benchmarks by a penny to its narrowest since September as a U.S. pipeline expansion project neared completion. 


    					

            					

                					
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    * U.S. Treasuries yields edged up on Monday to just below their highest levels in eight months as investors got ready for the new year's first sale of new coupon securities and debated whether the Federal Reserve could end bond purchases before year-end. 



    LOCAL MARKETS PREVIOUS CLOSE 

    * BSE index 19,691.42 (-0.47 pct)

    * NSE index 5,988.40 (-0.46 pct)

    * Rupee 55.23/24 per dollar (55.07/08)

    * 10-year bond yield 7.90 pct (7.93 pct) 

    * 5-year OIS rate 7.16 pct (7.14 pct) 

    * 1-year OIS rate 7.59 pct (7.58 pct) 

    * Call money 8.00/8.05 pct (8.00/8.10 pct Fri)

    

    OVERNIGHT NEWS

    * India's central bank allowed less than one-year debt securities to be included as underlying securities for repo in corporate bonds and credit default swaps (CDS), a measure aimed at boosting the corporate bond market. 

    * The Indian government is likely to approach parliament next month to water down retrospective tax rules that damaged investor confidence, two finance ministry officials said on Monday, a move that may help settle British-based Vodafone Group

Plc's long-runnning $2 billion tax dispute.

 

 

    MAJOR DEALS/ACQUISITIONS

    * The Export-Import Bank of India (Baa3/BBB-) priced a $750 million 10-year Reg S deal at T+220bp, which is at the tight end of its final guidance after its total order book rose to $6.4 billion with 263 accounts participating. (IFR)

    * Diane Plc's mandatory share tender offer to buy up to 26 percent additional stake in India's United Spirits  has been postponed as the companies are yet to receive Indian regulatory approvals, a source with direct knowledge said. 

    



    USD/INR NDFs (NY closing prices)   

    * For up-to-date prices, double click  

      Close      Open      High     Low      Volume  

    55.45-48    55.50     55.66    55.43      High

    

    FIG INVESTMENTS-EQUITIES (Net dollars)                      

                        

    Jan. 7*                  $174.28 mln#

    Month-to-date**            $1.06 bln 

    Year-to-date**             $1.06 bln         

    * Provisional NSE data         

    ** Source: Data as per custodial filing as on Jan. 7 on SEMI

website.

    #(As per Reuters conversion, $1 = 55.255 rupees)     

             

    FIG INVESTMENTS-DEBT (Net Dollars)  *  

                              Debt             

    Jan. 4                 -$82.54 mln

    Month-to-date          $304.11 mln

    Year-to-date           $304.10 mln                    

    * Source: Data as per custodial filing as on Jan. 7 on SEMI

website.

        

    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)

                                Jan. 7

    Foreign Banks                      -22.63 bln

    Public Sector Banks                  3.95 bln

    Private Sector Banks                17.55 bln

    Mutual Funds                         5.90 bln 

    Others                               4.78 bln

    Primary Dealers                     -9.55 bln

    Source: Clearing Corp of India Ltd

          

    MONEY MARKET INFLOWS

Instrument               Payment    Date           Amount 

SD 07.93%, 2019         Interest   Jan 08            396.50 

(AND PRADESH) 

SD 07.96%, 2019         Interest   Jan 08            796.00 

(WEST BENGAL) 

SD 07.97%, 2019         Interest   Jan 08            398.50 

(UTTER PRADESH) 

SD 08.03%, 2018         Interest   Jan 08            120.45 

(DIARCHAL PRADESH) 

SD 08.06%, 2018         Interest   Jan 08            241.80 

(RAJASTHAN) 

SDL 08.07%, 2018         Interest   Jan 08            847.35 

(2 States) 

SDL 08.08%, 2018         Interest   Jan 08            808.00 

(MAHARASHTRA) 

SDL 08.12%, 2018         Interest   Jan 08            338.32 

(KERALA) 

7.99% 2017               Interest   Jan 09          28364.50 

8.33% 2026               Interest   Jan 09          22491.00 

SDL 08.57%, 2022         Interest   Jan 11            149.98 

(PUNJAB) 

SDL 08.58%, 2022         Interest   Jan 11             21.45 

(MEGHALAYA) 

SDL 08.62%, 2022         Interest   Jan 11             43.10 

(UTTARAKHAND) 

SDL 08.69%, 2022         Interest   Jan 11            543.13 

(KARNATAKA) 

SDL 08.72%, 2022         Interest   Jan 11           2180.00 

(3 States) 

SDL 08.74%, 2022         Interest   Jan 11            269.63 

(RAJASTHAN) 

SDL 08.75%, 2022         Interest   Jan 11            787.50 

(2 States) 

SDL 09.81%, 2018         Interest   Jan 11            245.25 

(PUNJAB) 

91 days T-Bill           Redemption Jan 11          85500.00 

364 days T-Bill          Redemption Jan 11          40000.00 

For the entire table click on: 

    ISSUANCES 

ASSET                 DATE         AMOUNT (IN RUPEES) 

State Loans           Jan 8      59.08 bln

T-Bills               Jan 9        100 bln    



    LIQUIDITY

    * The Reserve Bank of India (RBI) said on Monday it accepted all 29 bids for 719.85 billion rupees at its one-day repo auction, through which it injects cash into the banking system.

It did not receive any bid at its reverse repo auction, through which it absorbs cash from the system. 

    * Indian banks' refinancing with RBI at 214.43 billion rupees. 

    * Indian banks' cash balances with RBI fall to 2.96 trillion rupees.