Indian FX/debt factors to watch - Jan 23
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.