Indian FX/debt factors to watch - March 13

Published 13-03-2015, 08:51 am
© Reuters.

GLOBAL MARKETS ROUNDUP

* Asian shares shook off early losses on Friday, underpinned by overnight gains on Wall Street, while the dollar steadied after its recent rally ran out of steam on disappointing retail sales data. MKTS/GLOB

* The U.S. dollar nursed modest losses early on Friday after nervous investors booked profits in an extended rally that has driven the greenback to successive multiyear peaks this week. FRX/

* Global oil prices fell on Thursday on estimates showing another big supply build at the delivery point for the U.S. crude contract, with trade volatile ahead of the expiry of the front-month in benchmark Brent oil. O/R

* U.S. Treasury debt prices eased on Thursday, with yields on long-maturity issues inching higher for the first time this week after a weak auction of $13 billion of 30-year bonds. US/

LOCAL MARKETS PREVIOUS CLOSE

* BSE index .BSESN 28,930.41 (up 0.95 pct)

* NSE index .NSEI 8,776.00 (up 0.87 pct)

* Rupee INR=D2 62.50/51 per dollar (62.78/79)

* 10-year bond yield IN084024G=CC 7.72 pct (7.76 pct)

* 5-year OIS rate INRSMONM5YFIX= 7.07 pct (7.10 pct)

* 1-year OIS rate INRANONM1YFIX= 7.62 pct (7.63 pct)

* Call money INROND= 6.80/6.85 pct (7.20/7.30 pct)

FACTORS TO WATCH

* India to release foreign reserves data at 1130 GMT

OVERNIGHT NEWS

* Indian Prime Minister Narendra Modi passed his first major economic reform almost a year after coming to power, as parliament voted late on Thursday to allow more foreign investment in the insurance sector. ID:nL4N0WE4Z0

* India's consumer inflation edged up in February for the third straight month, mainly driven by food prices, underscoring the risk of a rebound in inflationary pressures from rising commodity prices. ID:nL4N0WE4F6

* Reliance Industries Ltd (NSE:RELI), which operates the world's biggest refining complex, will shut half of its 660,000 barrels per day (bpd) refinery in India for a four-week planned maintenance from Sunday, a source privy to the matter said. ID:nL4N0WE587

* Indian Prime Minister Narendra Modi has secured agreements to develop islands in Mauritius and Seychelles in an early success for his drive to wrest back influence in the Indian Ocean from China. ID:nL4N0WE38D

* Britain's foreign minister raised concerns in India on Thursday about a $1.6 billion retrospective tax bill charged to oil explorer Cairn Energy, and had been reassured there are no other such cases. ID:nL4N0WE3MP

* India's largest bank will hold a record online auction this weekend to sell repossessed flats, warehouses and offices worth a total of nearly $200 million as the state lender seeks to chip away at its $10 billion mountain of bad debt. ID:nL4N0WE3JR

* India is aiming to produce 700 million tonnes of coal in the next fiscal year, the country's coal secretary said, in what would be its biggest annual growth in output as it auctions off mines and state giant Coal India (NSE:COAL) boosts production. ID:nL4N0WE418

* Chinese smartphone maker Xiaomi Inc said on Thursday it would invest further and begin local production within 12 to 18 months in India, one of the world's fastest-growing markets and currently dominated by Samsung (LONDON:0593xq) Electronics and local firms like Micromax. ID:nL4N0WE3E8

* For viewers of Oscar-winning film "Slumdog Millionaire", Mumbai's vast Dharavi slum is a byword for poverty, but to online retailer Snapdeal.com it is a battleground for new customers and, it hopes, a source of better margins. ID:nL4N0WE3PR

KEY DEALS

* India's HDFC Bank (NSE:HDBK), rated BBB- by S&P, has increased the size of its MTN programme to $3 billion from $2 billion. IFR

USD/INR NDFs (NY closing prices)

For up-to-date prices, double click PNDF

Open

High

Low

Close

Volume

63.00

63.00

62.80

62.95-98

NA

FII INVESTMENTS-EQUITIES (Net dollars)

March 12*

$117.29 mln

Month-to-date**

$1.33 bln

Year-to-date**

$5.29 bln

* Provisional NSE data

** Source: Data as per latest custodial filing as on March 12 on NSDL's website.

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

March 12*

-$1.60 mln

Month-to-date

$392.12 mln

Year-to-date

$6.19 bln

* Source: Data as per latest custodial filing as on March. 12 on NSDL's website, Reuters calculation

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

March. 12

Foreign Banks

27.29 bln

Public Sector Banks

-45.85 bln

Private Sector Banks

6.78 bln

Mutual Funds

2.80 bln

Others

3.38 bln

Primary Dealers

5.60 bln

INFLOWS

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

Instrument

Payment

Date

Amount

(mln rupees)

=========================================================== SDL 08.25%, 2017

Interest Mar 14

82.50 (RAJASTHAN) SDL 08.32%, 2017

Interest Mar 14

297.22 (2 States) SDL 08.35%, 2017

Interest Mar 14

88.30 (HIMACHAL PRADESH) SDL 08.38%, 2017

Interest Mar 14

88.22 (UTTARAKHAND) SDL 08.39%, 2017

Interest Mar 14

95.31 (3 States) SDL 08.40%, 2017

Interest Mar 14

197.40 (MADHYA PRADESH) SDL 08.45%, 2017

Interest Mar 14

105.63 (JAMMU & KASHMIR) SDL 08.65%, 2021

Interest Mar 14

648.75 (WEST BENGAL) SDL 08.93%, 2022

Interest Mar 14

22.33 (MIZORAM) SDL 08.94%, 2022

Interest Mar 14

272.67 (2 States) SDL 08.97%, 2022

Interest Mar 14

201.83 (KERALA) SDL 08.99%, 2022

Interest Mar 14

254.87 (GUJARAT)

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

For the monthly inflows see: ID:nL4N0W41RM

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

LIQUIDITY

* The Reserve Bank of India said on Thursday it accepted all 45 bids for 173.28 billion rupees ($2.77 billion) at its one-day repo auction, through which it injects liquidity into the banking system. ID:nS8N0PM000

* Indian banks' refinancing with RBI rises to 70.30 billion rupees. ID:nS8N0P705H

* Indian banks' cash balances with RBI fall to 3.46 trillion rupees. ID:nS8N0P705I

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