Indian FX/debt factors to watch - Feb 4
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.