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Indian FX/debt factors to watch - Oct 4

Wednesday, 3 Oct 2012 | 11:10 PM ET

GLOBAL MARKETS ROUNDUP

* Asian shares steadied on Thursday and the safe-haven dollar eased after positive U.S. data, leaving investors waiting for more economic indicators from the world's largest economy later in the day and a European Central Bank policy meeting.

* The yen struggled at two-week lows against the dollar on Thursday, with wary speculators taking a pre-emptive move just in case the Bank of Japan surprises this week by easing policy.

* Oil prices fell sharply on Wednesday as disappointing economic data from China and Europe reinforced concerns about slowing growth and a weakening demand for petroleum, even as supportive U.S. data strengthened the dollar.

* U.S. Treasuries ended little changed on Wednesday as investors waited on the release of minutes from the Federal Reserve's September policy meeting on Thursday, and on a highly anticipated jobs report on Friday for further direction about the strength of the economic recovery.

LOCAL MARKETS CLOSE ON OCT. 3

* BSE index

18,869.69 points (up 0.24 pct)

* NSE index

5,731.25 points (up 0.22 pct)

* Rupee

52.1550/1650 per dollar (52.40/41)

* 10-year bond yield 8.15 pct (8.16 pct) * 5-year OIS rate 6.96 pct (7.03 pct) * 1-year OIS rate 7.58 pct (7.61 pct) * Call money 8.05/8.10 pct (8.00/8.15 pct) OVERNIGHT NEWS

* India's cabinet is set approve bills that would raise the cap on foreign direct investment in insurance firms and open the pension sector to foreign investors, a minister said on Wednesday.

KEY EVENTS TO WATCH

* India's central bank governor Duvvuri Subbarao and other officials part of the board meeting in the Union Territory of Puducherry at 0730 GMT.

* Services PMI for September due at 0500 GMT.

MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS

* BG Group

said it agreed to sell its majority stake in western India-based Gujarat Gas

for $470 million to a unit owned by India's state-run Gujarat State Petroleum Corp (GSPC), as part of the British oil firm's disposal programme.

* Indian Railway Finance Corp has kicked off the latest wave of US dollar fundraising from India with a hugely popular five-year bond. IRFC was poised to price a $300 million deal on Wednesday night after attracting orders of over $3.6 billion by the end of Asian trading hours. (IFR)

USD/INR NDFs (NY closing prices)

* For up-to-date prices, double click

Close High Low Volume 52.52-57 52.62 52.45 High

FII INVESTMENTS-EQUITIES (Net dollars)

Oct. 3* $39.84 mln# Month-to-date** $302.23 mln Year-to-date** $16.16 bln

* Provisional NSE data

** Source: Data as per custodial filing as on Oct. 3 on SEBI website.

#(As per Reuters conversion, $1 = 52.20 rupees)

FII INVESTMENTS-DEBT (Net Dollars)

* Debt Oct. 1 $71.59 mln Month-to-date $186.40 mln Year-to-date $4.99 bln

* Source: Data as per custodial filing as on Oct. 3 on SEBI website.

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

Oct. 3 Foreign Banks 6.30 bln Public Sector Banks -12.36 bln Private Sector Banks 2.02 bln Mutual Funds 3.63 bln Others -1.67 bln Primary Dealers 2.08 bln

Source: Clearing Corp of India Ltd

WEEKLY GOVERNMENT BOND AUCTIONS (In rupees) MATURITIES DATE AMOUNT 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. 3

* The Reserve Bank of India (RBI) on Wednesday accepted all six bids for 139.30 billion rupees at its one-day repo auction, through which it injects liquidity into the banking system. It also accepted both bids for 2.4 billion rupees at its reverse repo auction, through which it absorbs excess liquidity from the banking system.

* Indian banks' refinancing with RBI falls to 164.56 billion rupees.

* Indian banks' cash balances with RBI rise to 3.36 trillion rupees.

(Compiled by Swati Bhat)

((swati.bhat@thomsonreuters.com)(+91-22-61807353)(Reuters

Messaging: swati.bhat.thomsonreuters.com@reuters.net))

Keywords: MARKETS INDIA FX DEBT/PREOPENER