Indian FX/debt factors to watch - Oct 3
GLOBAL MARKETS ROUNDUP
* The dollar firmed and most riskier assets edged lower on Wednesday as uncertainty over the timing of Spain's request for an international bailout added to worries about slowing global growth.
* The euro started trade on Wednesday slightly on the back foot after Spain dented hopes that it would soon ask for a bailout, while the Australian dollar threw a fit on prospects of more domestic interest rate cuts following Tuesday's easing.
* Brent crude futures slipped towards $111 per barrel on Wednesday, hurt by persistent concerns on global growth and oil demand, while Europe's festering debt crisis added to uncertainty.
* U.S. Treasury prices ended slightly higher on Tuesday as investors waited on key employment data scheduled for later this week even as Spain appeared to be on track, if not yet ready, to get assistance to ease its debt crisis.
LOCAL MARKETS CLOSE ON OCT. 1
* BSE index 18,823.91 (up 0.33 pct) * NSE index 5,718.8 (up 0.27 pct) * Rupee
52.40/41 per dollar (52.85/86)
* 10-year bond yield 8.16 pct (8.15 pct) * 5-year OIS rate 7.03 pct (7.05 pct) * 1-year OIS rate 7.61 pct (7.63 pct) * Call money
8.00/8.15 pct (7.95/8.00 pct)
OVERNIGHT NEWS * Non-bank lender
is out with price guidance at 310bp over US Treasuries for a USD300m 5-year Reg S deal. The deal size will not grow and expected ratings are Baa3/BBB-/BBB-. Pricing is expected later today via joint leads Barclays, BofA Merill, Citigroup and Deutsche Bank.
* The Asian Development Bank cut most of its 2012 and 2013 growth estimates for developing Asia on Wednesday as a slump in global demand weighs on the region's powerhouses China and India and on its export-dependent economies.
* India's wealthy, from old money to nouveaux riches IT entrepreneurs, are quietly snapping up hotels and mines Down Under just as Australia embarks on an immigration campaign to attract long-term investment.
* India's Kingfisher Airlines Ltd
, controlled by liquor baron Vijay Mallya, cancelled all flights through Thursday because of labour unrest and was ordered by the aviation regulator to submit a revival plan before it can fly again.
KEY EVENTS TO WATCH
* An Indian ministerial panel meets to discuss a plan to ask older telcos to pay for their existing airwave holding at a price to be derived in an upcoming auction. (0630GMT)
* India's central bank governor Duvvuri Subbarao will address students at an academic event in the Union Territory of Puducherry, south of the country. (1230GMT)
MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS
* On the offshore front, Indian Oil Corporation (Ba3/BBB-, Moody's/Fitch) will kick off investor meetings in Singapore on Wednesday to explore a debut issue in the local currency market. DBS Bank and Standard Chartered will arrange the roadshows, after which a Singapore-dollar denominated deal may follow, pending market conditions. (IFR)
* Sole bookrunner, SBI Capital Markets has wrapped up a US$2.196 billion standby letter of credit-backed facility for Videocon Industries and its subsidiary Videocon Oil Ventures. The loan, maturing in December 2026, was signed on September 27. (IFR)
* The near $1.5 billion-equivalent facility for Reliance Industries is being signed by 28 banks via circulation. Of the 16 mandated lead arrangers and bookrunners, State Bank of India holds about $396.2m. (IFR)
USD/INR NDFs (NY closing prices)
* For up-to-date prices, double click
Close High Low Volume 52.66-71 52.70 52.60 High
FII INVESTMENTS-EQUITIES (Net dollars)
Oct. 1* $39.52 mln# Month-to-date** $258.34 bln Year-to-date** $16.12 bln
* Provisional NSE data
** Source: Data as per custodial filing as on Oct. 1 on SEBI website.
#(As per Reuters conversion, $1 = 52.625 rupees)
FII INVESTMENTS-DEBT (Net Dollars)
* Debt Sept. 28 $114.81 mln Month-to-date $114.81 mln Year-to-date $4.91 bln
* Source: Data as per custodial filing as on Oct. 1 on SEBI website.
GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Oct. 1 Foreign Banks -0.83 bln Public Sector Banks 0.41 bln Private Sector Banks -3.06 bln Mutual Funds 1.25 bln Others 5.96 bln Primary Dealers -3.73 bln
Source: Clearing Corp of India Ltd
WEEKLY GOVERNMENT BOND AUCTIONS (In rupees) MATURITIES DATE AMOUNT T-Bills Sale Oct.3 100 bln Bond Sale Oct.5 130 bln INFLOWS SDL 08.20%, 2017 Interest Oct 05 241.99 (KERALA) SDL 08.42%, 2020 Interest Oct 05 210.50 (JAMMU & KASHMIR) SDL 08.85%, 2021 Interest Oct 05 712.43 (4 States) SDL 08.88%, 2021 Interest Oct 05 444.00 (GUJARAT) SDL 08.89%, 2021 Interest Oct 05 1111.25 (2 States) SDL 08.90%, 2021 Interest Oct 05 1167.94 (2 States) 91 days T-Bill Redemption Oct 05 80000.00 364 days T-Bill Redemption Oct 05 40000.00 SDL 08.34%, 2020 Interest Oct 06 208.50 (PUNJAB) SDL 08.35%, 2020 Interest Oct 06 626.25 (2 States) SDL 08.37%, 2020 Interest Oct 06 41.85 (GOA) For detailed table, see: LIQUIDITY, as of Oct.1
* The Reserve Bank of India (RBI) said on Monday it accepted all 27 bids for 689.6 billion rupees at its two-day repo auction, through which it injects liquidity into the banking system. It received 11 bids for 85 billion rupees at its reverse repo auction, through which it absorbs excess liquidity from the banking system.
* Indian banks' refinancing with RBI steady at 176.68 billion rupees.
* Indian banks' cash balances with RBI fall to 3.04 trillion rupees.
(Compiled by Subhadip Sircar)
Keywords: MARKETS INDIA FX DEBT/PREOPENER