Indian FX/debt factors to watch - March 11

Published 11-03-2015, 08:53 am
© Reuters.

GLOBAL MARKETS ROUNDUP

* Asian stocks fell to a two-month low on Wednesday as nervous markets recoiled on worries about an earlier U.S. interest rate hike, while such a prospect helped send the dollar to a 12-year high against the euro. MKTS/GLOB

* The euro fell to a fresh 12-year low early on Wednesday, extending a broad decline just days after the European Central Bank kicked off its 1 trillion euro bond-buying program. FRX/

* A rallying dollar sent oil prices sharply lower on Tuesday, with Brent falling more than U.S. crude as players took profits on recent highs in Brent's premium, traders said. O/R

* U.S. Treasury debt yields fell on Tuesday, as Europe's massive bond-buying program dropped yields there, adding to the relative value of U.S. Treasuries. US/

LOCAL MARKETS PREVIOUS CLOSE

* BSE index .BSESN 28,709.87 (down 0.47 pct)

* NSE index .NSEI 8,712.05 (down 0.51 pct)

* Rupee INR=D2 62.76/77 per dollar (62.55/56)

* 10-year bond yield IN084024G=CC 7.75 pct (7.74 pct)

* 5-year OIS rate INRSMONM5YFIX= 7.10 pct (7.08 pct)

* 1-year OIS rate INRANONM1YFIX= 7.64 pct (7.61 pct)

* Call money INROND= 6.75/6.80 pct (7.70/7.75 pct)

FACTORS TO WATCH

* India finance minister to meet PSU bank heads at around 0430 GMT

OVERNIGHT NEWS

* India's government rallied its allies on Tuesday behind a land reform bill, setting the stage for a vote in the upper house of parliament that will test Prime Minister Narendra Modi's ability to pursue his business-friendly agenda. ID:nL4N0WC457

* India's current account deficit narrowed in October-December from the previous quarter on the back of slumping oil price and analysts said it should move into surplus in early 2015 for the first time in eight years. ID:nL4N0WC494

* Aggressive bidding by Indian mobile phone operators including Bharti Airtel (NSE:BRTI) Ltd BRTI.NS and Idea Cellular Ltd (NSE:IDEA) IDEA.NS for mobile airwaves, betting on a surge in data usage, is set to see the government raising record revenue from the auction. ID:nL4N0WC3EM

* India has revived plans to set up a urea manufacturing plant in Iran with a capacity of 1.3 million tonnes, junior chemicals and fertilisers minister Hansraj Gangaram Ahir said on Tuesday. ID:nL4N0WC43S

* Faster growth and improved consumer sentiment should boost sales of passenger cars and utility vehicles in India by 6 to 8 percent in the year starting in April, the country's auto industry body said on Tuesday. ID:nL4N0WC3I6

* Oil explorer Cairn Energy CNE.L has filed a dispute notice against the Indian income tax department over a $1.6 billion tax claim from the 2006-2007 fiscal year, the company said on Tuesday. ID:nL5N0WC4D9

* Poultry firms expect demand to pick up after a ban on beef in India's western state of Maharashtra, with other states ruled by Prime Minister Narendra Modi's Hindu nationalist party also aiming to toughen laws on livestock slaughter. ID:nL4N0WC3R5

KEY DEALS

* Indian drugmaker Dr Reddy's Laboratories Ltd REDY.NS is in talks to acquire the Indian operations of Belgian pharmaceutical company UCB SA UCB.BR for about $135 million, said a person with direct knowledge of the matter. ID:nL4N0WB1RL

USD/INR NDFs (NY closing prices)

For up-to-date prices, double click PNDF

Open

High

Low

Close

Volume

NA

63.32

63.17

63.29-31

NA

FII INVESTMENTS-EQUITIES (Net dollars)

March 10*

-$119.18 mln

Month-to-date**

$1.48 bln

Year-to-date**

$5.44 bln

* Provisional NSE data

** Source: Data as per latest custodial filing as on March 10 on NSDL's website.

FII INVESTMENTS-DEBT (Net Dollars) INFII INFII01* Debt

March 10*

-$52.57 mln

Month-to-date

$333.52 mln

Year-to-date

$6.13 bln

* Source: Data as per latest custodial filing as on March. 10 on NSDL's website, Reuters calculation

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)

March. 10

Foreign Banks

-27.76 bln

Public Sector Banks

5.33 bln

Private Sector Banks

16.80 bln

Mutual Funds

3.75 bln

Others

1.09 bln

Primary Dealers

0.79 bln

INFLOWS

===========================================================

Instrument

Payment

Date

Amount

(mln rupees)

=========================================================== SDL 09.39%, 2023

Interest Mar 11

47.94 (HIMACHAL PRADESH) SDL 09.50%, 2023

Interest Mar 11

701.58 (2 States) SDL 09.51%, 2023

Interest Mar 11

951.00 (MAHARASHTRA) SDL 09.52%, 2023

Interest Mar 11

238.00 (RAJASTHAN) SDL 09.54%, 2023

Interest Mar 11

715.50 (KARNATAKA) SDL 09.55%, 2023

Interest Mar 11

1369.25 (2 States) 10.18% 2026

Interest Mar 11

7635.00 SDL 09.60%, 2018

Interest Mar 12

691.20 (2 States) SDL 09.65%, 2024

Interest Mar 12

603.12 (TAMIL NADU) SDL 09.67%, 2024

Interest Mar 12

556.03 (2 States) SDL 09.69%, 2024

Interest Mar 12

268.90 (3 States) SDL 09.70%, 2024

Interest Mar 12

970.00 (2 States) SDL 09.71%, 2024

Interest Mar 12

1475.92 (2 States)

===========================================================

For the monthly inflows see: ID:nL4N0W41RM

===========================================================

LIQUIDITY

* The Reserve Bank of India said on Tuesday it accepted all 43 bids for 167.09 billion rupees ($2.66 billion) at its one-day repo auction, through which it injects liquidity into the banking system. ID:nS8N0P705A

* Indian banks' refinancing with RBI flat at 70.30 billion rupees. ID:nS8N0P7057

* Indian banks' cash balances with RBI rise to 3.68 trillion rupees. ID:nS8N0P7058

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