Indian FX/Debt Factors to Look for on Jan 24

GLOBAL MARKETS ROUNDUP


				
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    * Asian shares fell on Thursday as investors were cautious ahead of manufacturing data from China, while a sharp slide in

Apple Inc shares following its earnings report also capped demand. 

    * The yen's rebound came to an abrupt halt on Thursday with investors wary about cutting bearish bets further amid


    					

            					

                					
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expectations the Bank of Japan will come under renewed pressure to ease policy. 

    * U.S. crude futures dropped 1.5 percent on Wednesday in heavy trading after a key oil pipeline reduced the volume

flowing through it, raising concerns inventories at the Midwest delivery point for the contract might swell further. 

    * U.S. Treasuries prices edged up on Wednesday after a vote by the House of Representatives to extend the borrowing

authority under the federal debt limit to May, and as some investors worried that growth is likely to remain tepid. 

       

    LOCAL MARKETS PREVIOUS CLOSE 

    * BSE index 20,026.61 (+0.23 pct)

    * NSE index 6,054.30 (+0.10 pct)

    * Rupee 53.6650/6750 per dollar (53.81/82)

    * 10-year bond yield 7.86 pct (7.85 pct) 

    * 5-year OIS rate 7.14 pct (7.12 pct) 

    * 1-year OIS rate 7.55 pct (7.53 pct) 

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

    

    FACTORS TO WATCH

    * Duvvuri Subbarao, governor of the Reserve Bank of India, will meet Finance Minister P Chidambaram on Thursday around 0400

IST (1030 GMT) ahead of Jan. 29 review of monetary policy. 

    

    OVERNIGHT NEWS

    * India's oil ministry will soon recommend a revision in local gas prices, a government source said, which if accepted

would bring a windfall for state-run producers - Oil and Natural Gas Crop and Oil India. 

    * India's central bank has barred foreign institutional investors (FIIs) from buying shares in Pantaloon Retail Ltd

, after the company breached the overall limit of 24 percent of its paid-up capital. 

    * The chief economist at the International Monetary Fund on Wednesday shot down the notion that easy monetary and fiscal

policies in advanced economies risk sparking a "currency war", saying there has not been a major surge of capital into emerging

nations. 

    * Indian banks' deposit advances and deposits grew at a slower pace in the first nine months of the financial year

2012-13 compared with a year earlier and are likely to fall short of the central bank's projection by March-end.

 

        

    MAJOR DEALS/ACQUISITIONS

    * Dutch banking and insurance group ING is to sell its 26 percent stake in an Indian insurance venture to local

partner Exide Industries, the second foreign insurer to exit a competitive sector in India within a year.

 

    * Drug company Cipla Medpro is expected to demand more than the $215 million on offer from Indian suitor Cipla Ltd

 to reflect a lucrative government contract win that will increase its earnings power. 

    * India's telecoms services and equipment provider Tata Communications has launched its much-anticipated Singapore

dollar deal, showing a three-year unrated Reg S at an initial guidance of 4.625 percent. (IFR) 

    * Housing and Development Board last evening increased its latest five-year bond to SGD 1.2 billion (USD 975.5 mln) - its

largest single tranche ever. The deal, priced at 1.23 percent, was upsized from an initial SGD 1 billion from a SGD 300 million

greenshoe. (IFR) 

    * India's Tata Steel is planning to raise 10 billion rupees ($185.82 million) through a dual tranche bond

sale, a source with direct knowledge of the deal said on Wednesday. 



    FII INVESTMENTS-EQUITIES (Net dollars)                      

                        

    Jan. 23*                 $149.46 mln#

    Month-to-date**            $3.02 bln 

    Year-to-date**             $3.02 bln         

    * Provisional NSE data         

    ** Source: Data as per custodial filing as on Jan. 23 on

SEBI website.

    #(As per Reuters conversion, $1 = 53.70 rupees)     

             

    FII INVESTMENTS-DEBT (Net Dollars)  *  

                              Debt             

    Jan. 22               $241.75 mln

    Month-to-date         $255.66 mln

    Year-to-date          $255.70 mln                    

    * Source: Data as per custodial filing as on Jan. 23 on SEBI

website.

        

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

                                Jan. 23

    Foreign Banks                      -15.62 bln

    Public Sector Banks                 12.86 bln

    Private Sector Banks                 0.65 bln

    Mutual Funds                         5.16 bln 

    Others                              -1.35 bln

    Primary Dealers                     -1.70 bln

    Source: Clearing Corp of India Ltd

          

    MONEY MARKET INFLOWS                         (mln rupees)

Instrument               Payment    Date              Amount 

91 days T-Bill           Redemption Jan 24          60044.80 

364 days T-Bill          Redemption Jan 24          40000.00 

For the entire table click on: 

    

    LIQUIDITY

    * The RBI said on Wednesday it accepted all 35 bids for 955.25 billion rupees at its one-day repo auction, through which

it injects cash into the banking system. It also accepted the sole bid for 50 million rupees at its reverse repo auction,

through which it absorbs cash from the system. 

    * Indian banks' refinancing with RBI falls to 204.58 billion rupees. 

    * Indian banks' cash balances with RBI fall to 2.98 trillion rupees.