Indian FX/debt factors to watch - Nov 14

Wed Nov 13, 2013 9:30pm EST

GLOBAL MARKETS ROUNDUP
    * Asian share markets were set to bounce on Thursday after
Federal Reserve Vice Chair Janet Yellen said the Fed has "more
work to do" to help the economy, spurring U.S. stocks higher and
putting the dollar on the defensive. 
    * Investors made short shrift of the dollar early in Asia on
Thursday after dovish comments from Fed Chairman-elect Janet
Yellen suggested the U.S. central bank might not be near scaling
back its stimulus, sending Treasury yields lower. 
    * Oil futures on both sides of the Atlantic rose more than 1
per barrel on Wednesday as support from Libyan supply outages
offset forecasts for increases in U.S. stockpiles. 
 
    * U.S. Treasury debt prices rose on Wednesday after Janet
Yellen reinforced the market's view that the central bank will
maintain accommodative monetary polices for awhile longer. 
 
                    
    LOCAL MARKETS PREVIOUS CLOSE 
    * BSE index 20,194.40 (-0.43 pct)
    * NSE index 5,989.60 (-0.47 pct)
    * Rupee 63.30/31 per dlr (63.71/72 per dlr)
    * 10-year bond yield 8.92 pct (9.05 pct) 
    * 5-year OIS rate 8.42 pct (8.54 pct) 
    * 1-year OIS rate 8.57 pct (8.68 pct) 
    * Call money 8.60/8.70 pct (8.70/8.75 pct)
     
    OVERNIGHT NEWS
    * India's central bank governor, Raghuram Rajan, expressed
comfort on Wednesday about core inflation and highlighted the
narrowing current account deficit as he sought to reassure
investors worried the country would be hit hard in a global
market sell-off. 
    
    Indian refiners have asked the government to clarify if they
can pay Iran for crude in euros after the National Iranian Oil
Company (NIOC) requested settlement of some debts through a
Turkish bank, Indian officials said on Wednesday.
 
    
    EVENTS/FACTORS TO WATCH
    * India's wholesale prices-led inflation data for October.
    * The Reserve Bank of India will sell 150 billion rupees of
government bonds. 
   
    MAJOR DEBT SALES/LOANS/MERGERS
    * Indian Oil Corp has returned to the market for another
$500 million three-year loan barely a couple of weeks after
having signed a like-sized, like-tenor borrowing which only
received one commitment in general syndication, sources said.
 
    * Mandated lead arranger UOB has joined the US$500m
three-year loan for Hindustan Petroleum Corp. 
    * National carrier Air India has raised a further $95
million through a 12-month bridge loan within just a couple of
months of having signed a separate $190 million bridge facility
in September, sources said. 
       
    USD/INR NDFs (NY closing prices)    
     For up-to-date prices, double click        
      Close      Open     High      Low     Volume        
     63.90-00    64.25    64.30     64.00    High
        
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Nov. 13*                   $47.26 mln
    Month-to-date**           $644.57 mln
    Year-to-date**            $16.84 bln
    * Provisional NSE data         
    ** Source: Data as per custodial filing as on Nov. 13 on
SEBI website.
    #(As per Reuters conversion, $1 = 63.4850 Indian rupees)    
             
    FII INVESTMENTS-DEBT (Net Dollars)  *   
                                    Debt             
    Nov. 12                      -$76.86 mln
    Month-to-date               -$653.63 mln
    Year-to-date                -$8.52 bln
    * Source: Data as per custodial filing as on Nov. 13 on SEBI
website.
    
    MONEY MARKET INFLOWS
===========================================================
Instrument               Payment    Date           Amount
                                               (mln rupees)
===========================================================
SDL 08.39%, 2017         Interest   Nov 15            209.75 
(TAMIL NADU) 
SDL 08.40%, 2017         Interest   Nov 15            378.00 
(2 States) 
SDL 08.48%, 2017         Interest   Nov 15            890.40 
(WEST BENGAL) 
SDL 08.55%, 2017         Interest   Nov 15            427.50 
(UTTAR PRADESH) 
SDL 08.69%, 2017         Interest   Nov 15            347.60 
(KERALA) 
6.07% 2014               Interest   Nov 15          12140.00 
8.35% 2022               Interest   Nov 15          18370.00 
9.15% 2024               Interest   Nov 15          42090.00 
91 days T-Bill           Redemption Nov 15         170907.50 
364 days T-Bill          Redemption Nov 15          50000.00
For the full table see: 
   
       
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Nov. 13  
    Foreign Banks                        -3.83 bln
    Public Sector Banks                  0.14 bln
    Private Sector Banks                 12.01 bln
    Mutual Funds                         -18.29 bln 
    Others                               -1.50 bln
    Primary Dealers                      11.47 bln
    Source: Clearing Corp of India Ltd
    
       LIQUIDITY
    * The Reserve Bank of India said on Wednesday it accepted
the sole bid for 70 million rupees at its one-day reverse repo
auction, through which it absorbs excess liquidity from the
banking system. 
    * Indian banks' refinancing with RBI rises to 434.26 billion
rupees. 
    * Indian banks' cash balances with RBI fall to 3.06 trillion
rupees. 

 (Compiled by Neha Dasgupta; Editing by Prateek Chatterjee)
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