Indian FX/debt factors to watch - May 10

Thu May 9, 2013 11:07pm EDT

GLOBAL MARKETS ROUNDUP
    * Asian shares eased on Friday, taking cues from global
equities which took a breather from recent rallies overnight,
but Japanese equities soared to fresh five-year highs as the
dollar's break above the symbolic 100 yen level underpinned
sentiment. 
    * The dollar remained at a lofty perch against its Japanese
counterpart on Friday, after breaking above the 100 yen level in
the previous session for the first time since April 2009. 
    * Brent crude edged up in volatile trade on Thursday, and
U.S. crude settled slightly down, as investors weighed Middle
East tensions against weak demand and high inventories. 
    * U.S. Treasury debt prices dipped slightly on Thursday,
easing late after the dollar jumped to a four-year high against
the Japanese yen, breaking through the key 100-yen mark and
spurring selling in longer-dated government debt. 
           
    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 19,939.04 (-0.26 pct)
    * NSE index 6,050.15 (-0.32 pct)
    * Rupee 54.25/26 per dollar (54.16/17)
    * 10-year bond yield 7.60 pct (7.69 pct) 
    * 5-year OIS rate 6.90 pct (6.96 pct) 
    * 1-year OIS rate 7.20 pct (7.25 pct) 
    * Call money 7.25/7.35 pct (7.25/7.35 pct)
   
    KEY EVENTS/FACTORS TO WATCH
    * India's car industry lobby group is scheduled to release
sales data for April at 0500 GMT, with the first month of a new
financial year expected to show continued gloom after the first
annual drop in sales for a decade in the year to March. 
    * India will release industrial output data for the month of
March and whole fiscal year 2012/13 on Friday at around 0530
GMT.
     
    MAJOR DEALS/ACQUISITIONS
    * Orders for Tata Motors' maiden Singapore dollar
issue have crossed S$1 billion mark by early afternoon with the
company set to price a benchmark size transaction by the end of
the day. 
    * Rolta India Ltd is in the market with $200
million five-year non-call three 144A/Reg S deal. 
    * The Department of Disinvestment is scheduled to select
three banks on May 20 to manage Engineers India's 33.6 million
share follow-on offering of $114 million. 
    * A viability gap funding of $270 million for the
development of the Hyderabad Metro Rail project has been
approved by the government appointed Empowered Committee, which
is headed by the secretary of the department of economic
affairs. 
               
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    May 9*                   $122.08 mln#
    Month-to-date**           $1.246 bln
    Year-to-date**            $12.73 bln
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on May 9 on SEBI
website. 
    #(As per Reuters conversion, $1 = 54.3 rupees)     
             
    FII INVESTMENTS-DEBT (Net Dollars)  *   
                                 Debt             
    May 8                      $120.68 mln
    Month-to-date              $1.39 bln
    Year-to-date               $5.04 bln
    * Source: Data as per custodial filing as on May 9 on SEBI
website.
        
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                 May 9 
    Foreign Banks                      -10.58 bln
    Public Sector Banks                -34.83 bln
    Private Sector Banks                49.26 bln
    Mutual Funds                         3.37 bln 
    Others                               0.78 bln
    Primary Dealers                    - 7.30 bln
    Source: Clearing Corp of India Ltd
   
    MONEY MARKET INFLOWS                         (mln rupees) 
Instrument               Payment    Date              Amount  
SDL 08.41%, 2020         Interest   May 10             84.10 

SDL 08.42%, 2020         Interest   May 10            842.00 

SDL 08.43%, 2020         Interest   May 10            421.50 

SDL 08.44%, 2020         Interest   May 10            189.90 

91 days T-Bill           Redemption May 09         110634.70 
182 days T-Bill          Redemption May 10          50000.00 
SDL 08.05%, 2019         Interest   May 11             80.50 

SDL 08.11%, 2019         Interest   May 11            202.75 

SDL 08.12%, 2019         Interest   May 11            406.00 

SDL 08.25%, 2019         Interest   May 11            536.25 

SDL 08.26%, 2019         Interest   May 11            539.53 

SDL 08.34%, 2017         Interest   May 11            145.95 

SDL 08.64%, 2021         Interest   May 11            172.80 

SDL 08.65%, 2021         Interest   May 11           1167.75 

SDL 06.40%, 2013         Redemption May 11          81454.03 

For full table: 
    
    ISSUANCE
SECURITY             AMOUNT (IN BLN RUPEES)       DATE
Bonds sale                 150                  May 10          
    
    
    LIQUIDITY
    * The Reserve Bank of India accepted all 37 bids worth 1.05
trillion rupees at its one-day repo auction, through which it
injects liquidity into the banking system. It also accepted the
sole bid for 100 million rupees at the reverse repo auction,
through which it absorbs excess liquidity from the banking
system. 
    * Indian banks' refinancing with RBI rose to 209.23 billion
rupees. 
    * Indian banks' cash balances with RBI fell to 2.89 trillion
rupees.
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