Indian FX/debt factors to watch-June 12

GLOBAL MARKETS ROUNDUP
* USD/INR likely to breach 56 as the euphoria over the
Spanish bank bailout gave way to renewed concerns about the euro
zone. The pair closed at 55.74/75.
* Asian markets reversed the previous day's hefty gains on
Tuesday as a European bailout for Spain's debt-stricken banks
failed to convince investors that the spread of the debt crisis
in Europe will be halted.
* The euro was on the defensive on Tuesday as worries over
Spain's hurried bank bailout were compounded by jitters about
upcoming elections that may determine Greece's future in the
euro.
* Brent crude inched towards its lowest so far this year on
Tuesday, slipping below $97 on concerns the euro zone debt
crisis will worsen and hurt the global economy, threatening
growth in oil demand.

OVERNIGHT NEWS
* The United States will exempt India, South Korea, Turkey
and four other countries from financial sanctions because they
have significantly cut purchases of Iranian oil, Secretary of
State Hillary Clinton said on Monday.
* Treasury Secretary Timothy Geithner will meet India's
finance minister in Delhi in June to strengthen economic and
financial ties between the two countries, the Treasury
Department said on Monday.
* Reserve Bank of India dollar sales in the foreign
exchange market fell in the spot market in April as the central
bank preferred to intervene mostly in the forward dollar market,
according to bank data released on Monday.

KEY EVENTS TO WATCH
* Industrial production data for April to be
released.(0530GMT)
* India's finance minister will hold a press conference
after meeting chiefs of state-run banks.(0615 GMT)

EXTERNAL COMMERCIAL BORROWINGS / MAJOR DEALS
* The first domestic credit-enhanced bond backed by
state-owned India Infrastructure Finance Company and the Asian
Development Bank is likely to be launched as early as next week.
The 3.2 billion ($62 million) bond sale of GMR Jadcherla
Expressways is rated AA by Icra and will have a tenor of 12.5
years. (IFR)
* Suzlon Energy's $300 million zero-coupon and $35.6 million
7.5 percent convertible bonds, both of which are due on June 12,
were trading at 130/134 and 129/131 ahead of a bondholder
meeting today.(IFR)

USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close Open High Low Volume
56.15-19 55.75 56.20 55.98 High

FII INVESTMENTS-EQUITIES (Net rupees)
June 11* 2.02 bln
Month-to-date** -7.87 bln
Year-to-date** 417.08 bln
* Provisional NSE data
** Source: SEBI (reporting date as of June 11, as submitted
by custodians)

FII INVESTMENTS-DEBT (Net Rupees)
Debt
June 8 4.00 bln
Month-to-date 430 mln
Year-to-date 192.22 bln
Source: SEBI (reporting date as of June 11, as submitted by
custodians)

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

June 11
Foreign Banks 9.19 bln
Public Sector Banks -9.77 bln
Private Sector Banks -915 mln
Mutual Funds 7.27 bln
Others 1.90 bln
Primary Dealers -2.24 bln
Source: Clearing Corp of India Ltd

WEEKLY GOVERNMENT BOND AUCTIONS (In rupees)
MATURITIES DATE AMOUNT
Bond Buy via OMOs June 12 120 bln
91-Day T-Bills June 13 100 bln
364-Day T-Bills June 13 50 bln

LIQUIDITY, as of June 11
* The Reserve Bank of India said on Monday it accepted all
36 bids for 886.85 billion rupees at its one-day repo auctions,
through which it injects liquidity into the banking system and a
sole bid for 200 million rupees at its one-day reverse repo
auction.
* Indian bank refinancings with RBI remain steady at 102.82
bln rupees.
* Indian banks' cash balances with RBI fall to 3.07 trln
rupees.

(Compiled by Madhura Karnik; Editing by Anand Basu)