Indian FX/debt factors to watch - Feb 4

Mon Feb 3, 2014 9:35pm EST

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GLOBAL MARKETS ROUNDUP
    * Asian shares tumbled on Tuesday though the dollar regained
some footing, after disappointing U.S. manufacturing data cast a
pall over Wall Street and gave investors little reason to hope
for stability in emerging markets after their recent rout.
 
    * The yen hovered at two-month highs against the euro and
dollar early on Tuesday, having powered higher as a selloff in
risk assets forced investors to cover bearish positions in the
low-yielding Japanese currency. 
    * U.S. oil futures fell more than $1 on Monday, pressured by
weak U.S. factory data and a sinking stock market, while Brent
crude's decline was limited by rising heating oil prices as a
snowstorm swept across the U.S. Northeast. 
    * U.S. Treasuries yields fell to their lowest levels since
the beginning of November on Monday after a report showed that
U.S. manufacturing grew at a substantially slower pace in
January. 
                    
    LOCAL MARKETS PREVIOUS CLOSE
    * BSE index 20,209.26 (down 1.48 pct)
    * NSE index 6,001.80 (down 1.44 pct)
    * Rupee 62.56/57 per dlr (62.68/69)
    * 10-year bond yield 8.73 pct (8.77 pct)  
    * 5-year OIS rate 8.42 pct (8.42 pct) 
    * 1-year OIS rate 8.69 pct (8.70 pct) 
    * Call money 7.00/7.10 pct (8.80/8.90 pct)
    
    KEY FACTORS/EVENTS TO WATCH
    * India to sell 100 billion rupees of bonds on Feb. 7-cbank
says. 
    * India's central bank governor, Raghuram Rajan, will be in
Delhi to attend the financial stability development council
meeting, which begins at 11 a.m. IST.
    * India's farm minister to address the opening ceremony of
Asia-Africa Agribusiness Expo, organised by a business chamber
body.
                        
    OVERNIGHT NEWS
    * India's political parties are unveiling populist measures
in a competition to win over voters before a national election
due in two months, even though the domestic economy is
struggling to recover from the worst slowdown in a decade.
 
    * After abrupt interest rate rises in India, Turkey and
South Africa, investors are now betting that Hungary and Russia
will be the next emerging economies forced to defend their
currencies, even though their finances look very different.
 
    * Emerging markets were facing headwinds going into 2014,
but January's rout surprised even the gloomiest of investors,
with big declines in stocks, bonds, and currencies.
 
    
    LOANS/DEALS
    * A $250m two-year facility for ABG Shipyard is likely to be
launched into general syndication on Tuesday. The facility was
launched to a select few senior lenders last week by Deutsche
Bank, which funded the deal solely on December 30. 
    * Power Finance Corp is planning to come back with
a sale on February 10, while state-owned Power Grid Corp of
India wants to tap the market on February 14, sources
said. 
    * Indian government's 10 percent stake in Axis Bank
 is expected to be sold through an overnight block
deal. The transaction is expected to be launched in around two
weeks, subject to improvement in appetite for emerging markets.
 
    * Engineers India is planning to launch its Rs5bn
follow-on offer on February 6. The offer will close on February
10. The government plans to sell a 10% stake or 33.6m shares
from its 80.40% holding. 


    USD/INR NDFs (NY closing prices) 
    For up-to-date prices, double click 
     Close      Open     High      Low     Volume        
    62.85-88   63.10    63.42     62.95     High
             
    FII INVESTMENTS-EQUITIES (Net dollars)                      
                        
    Feb. 3*                 -$117.40 mln
    Month-to-date**          -$93.09 mln
    Year-to-date**            $31.50 mln
    * Provisional NSE data         
    ** Source: Data as per the latest custodial filing as on
Feb. 4 on SEBI website.
    #(As per Reuters conversion, $1 = 62.6925 Indian rupees)
             
    FII INVESTMENTS-DEBT (Net Dollars)  *   
                                    Debt             
    Feb. 3                        -$33.75 mln
    Month-to-date                 -$33.75 mln
    Year-to-date                    $2.03 bln
    * Source: Data as per latest custodial filing as on Feb. 4
on SEBI website.
       
    GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
                                Jan. 30
    Foreign Banks                       12.96 bln
    Public Sector Banks                  3.09 bln
    Private Sector Banks                -6.66 bln
    Mutual Funds                        -8.10 bln
    Others                               3.70 bln
    Primary Dealers                     -5.01 bln
    Source: Clearing Corp of India Ltd
    
    MONEY MARKET INFLOWS
===============================================================
Instrument               Payment    Date            Amount 

==============================================================
SDL 08.32%, 2020         Interest   Feb 04           1014.00

SDL 08.37%, 2020         Interest   Feb 04            502.20

SDL 08.42%, 2020         Interest   Feb 04            210.50

SDL 07.32%, 2015         Interest   Feb 05             91.50

SDL 07.95%, 2017         Interest   Feb 05             79.50

SDL 07.95%, 2019         Interest   Feb 05            596.25

SDL 07.99%, 2019         Interest   Feb 05            799.00

SDL 08.01%, 2019         Interest   Feb 05            190.00

SDL 08.02%, 2019         Interest   Feb 05            802.00

SDL 08.03%, 2019         Interest   Feb 05            602.25

SDL 07.24%, 2019         Interest   Feb 06            236.74

SDL 07.26%, 2019         Interest   Feb 06            435.60

SDL 07.27%, 2019         Interest   Feb 06            834.23

SDL 07.29%, 2019         Interest   Feb 06            364.50

SDL 08.66%, 2023         Interest   Feb 06            246.81

SDL 08.67%, 2023         Interest   Feb 06           1127.10

SDL 08.68%, 2023         Interest   Feb 06            434.00

SDL 08.69%, 2023         Interest   Feb 06            217.25

SDL 08.71%, 2023         Interest   Feb 06            217.75

SDL 08.72%, 2023         Interest   Feb 06           1090.00

91 days T-Bill           Redemption Feb 06          95100.00
364 days T-Bill          Redemption Feb 06          50000.00
===============================================================
 For the full table for February inflows, see: 
===============================================================

    LIQUIDITY
    * The Reserve Bank of India said on Monday it accepted all
49 bids for 315.65 billion rupees ($5.04 billion) at its one-day
repo auction through which it injects liquidity into the banking
system. 
    * Indian banks' refinancing with RBI falls to 330.16 billion
rupees. 
    * Indian banks' cash balances with RBI fall to 3.14 trillion
rupees.
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