Indian FX/debt factors to watch - Jan 23

Wed Jan 22, 2014 9:49pm EST

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GLOBAL MARKETS ROUNDUP
    * Asian markets got off to a soggy start on Thursday as
investors counted down to data on Chinese manufacturing, while
diverging outlooks for interest rates sent the British pound
soaring and tipped the Canadian dollar into a tailspin.
 
    * The Canadian dollar wallowed at four-year lows early on
Thursday after the Bank of Canada all but begged the market to
sell the currency, while sterling took off as investors priced
in an earlier start to rate hikes in the UK. 
    * Oil rose more than a dollar on Wednesday to settle at its
highest price this year on the startup of a new major pipeline,
expected to help eliminate a bottleneck that has depressed the
U.S. futures for three years, and on expectations that frigid
weather in the Northeast would prompt strong demand for heating
fuel. 
    * U.S. Treasuries prices fell on Wednesday and benchmark
yields edged up from five-week lows, with prices dragged lower
by weaker German government debt. 
                    
    LOCAL MARKETS PREVIOUS CLOSE
    * BSE index 21,337.67 (up 0.41 pct)
    * NSE index 6,338.95 (up 0.4 pct)
    * Rupee 61.8150/8250 per dlr (61.88/89)
    * 10-year bond yield 8.61 pct (8.55 pct)  
    * 5-year OIS rate 8.21 pct (8.11 pct) 
    * 1-year OIS rate 8.34 pct (8.18 pct) 
    * Call money 6.85/6.90 pct (8.15/8.25 pct)
    
    KEY FACTORS/EVENTS TO WATCH
    * Reserve Bank of India's Governor Raghuram Rajan scheduled
to give an address at a school in New Delhi, his first public
appearance since the central bank appointed panel recommended
major shift in monetary policy in 15 years. 
    
    OVERNIGHT NEWS
    * The Reserve Bank of India will likely hold interest rates
steady when it meets next week thanks to easing inflation and as
it waits for more data, according to a Reuters poll of
economists, who also predict better economic growth in the next
fiscal year. 
    * Developing economies will feel some impact from the U.S.
Federal Reserve's winding down of its stimulus but India is
better prepared than last year, Finance Minister Palaniappan
Chidambaram said on Wednesday. 
    * The biggest overhaul of India's monetary policy in 15
years aims to tackle the nagging inflation that pushes up credit
costs and stifles investment, but the changes risk imperilling
already weak economic growth in the absence of broader reforms.
 
    * India's central bank will release its report on
macroeconomic and monetary developments for the October-December
quarter along with the monetary policy review on Jan. 28, it
said in a statement on Wednesday. 
    * Iran's oil exports have picked up modestly in January for
the third consecutive month, according to sources who track
tanker movements, adding to signs that the easing of sanctions
pressure on Tehran is helping its oil exports to recover.
 
    
    MAJOR DEALS/MERGERS
    * State-owned Nuclear Power Corp of India last night priced
its offering of 20 billion rupees ($322 million) 15-year bonds,
after receiving bids on Monday afternoon. The bonds will pay a
semi-annual coupon to yield 9.18 percent. On an annual basis,
they work out to about 9.39 percent.  
    * The $500 million four-year loan for London-listed miner
Vedanta Resources has received its first commitment in senior
syndication ahead of its launch into general syndication next
week, sources said. 
      
    USD/INR NDFs (NY closing prices) 
    For up-to-date prices, double click 
     Close      Open     High      Low     Volume        
    62.15-20   62.20    62.28     62.19     High
             
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Jan. 22                  $45.11 mln
    Month-to-date**          $441.03 mln
    Year-to-date**           $441.00 mln
    * Provisional NSE data         
    ** Source: Data as per the latest custodial filing as on
Jan. 22 on SEBI website.
    #(As per Reuters conversion, $1 = 61.8450 rupees) 
             
    FII INVESTMENTS-DEBT (Net Dollars)  *   
                                    Debt             
    Jan. 21                        $122.58 mln
    Month-to-date                  $3.19 bln
    Year-to-date                   $3.19 bln
    * Source: Data as per latest custodial filing as on Jan. 22
on SEBI website.
       
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Jan. 22
    Foreign Banks                        5.95 bln
    Public Sector Banks                  15.31 bln
    Private Sector Banks                 15.04 bln
    Mutual Funds                         -32.85 bln
    Others                                6.31 bln
    Primary Dealers                      -9.76 bln
    Source: Clearing Corp of India Ltd
    
    MONEY MARKET INFLOWS
===============================================================
Instrument               Payment    Date            Amount 

==============================================================
SDL 07.00%, 2019         Interest   Jan 23           1097.25

SDL 07.09%, 2019         Interest   Jan 23            142.97

SDL 07.10%, 2019         Interest   Jan 23            649.74

SDL 07.13%, 2019         Interest   Jan 23            582.02

SDL 08.48%, 2017         Interest   Jan 23            212.00

SDL 08.56%, 2023         Interest   Jan 23            856.00

SDL 08.57%, 2023         Interest   Jan 23            309.22

SDL 08.58%, 2023         Interest   Jan 23            677.82

SDL 08.59%, 2023         Interest   Jan 23            859.00

SDL 08.60%, 2023         Interest   Jan 23           1075.00

SDL 08.64%, 2023         Interest   Jan 23            345.60

91 days T-Bill           Redemption Jan 23          89070.00
364 days T-Bill          Redemption Jan 23          50000.00
===============================================================
 For the full table for January inflows, see: 
===============================================================

    LIQUIDITY
    * The Reserve Bank of India said on Wednesday it accepted
all 62 bids for 404.51 billion rupees ($6.54 billion) at its
one-day repo auction, through which it injects liquidity into
the banking system. 
    * Indian banks' refinancing with RBI falls to 364.07 billion
rupees. 
    * Indian banks' cash balances with RBI rise to 3.19 trillion
rupees.
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