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Indian FX/debt factors to watch - Oct 5

Thursday, 4 Oct 2012 | 10:48 PM ET

GLOBAL MARKETS ROUNDUP

* Asian shares rose and the euro kept most of its overnight gains on Friday as investor risk aversion eased after the European Central Bank said it was ready to buy bonds of troubled euro zone countries, while markets awaited a key U.S. jobs report.

* The euro started Friday's trading session on a solid footing, having rallied to two-week highs after the European Central Bank said it was ready to buy bonds of troubled euro zone members and that conditions to trigger the programme need not be punitive.

* Oil prices jumped 4 percent on Thursday as inflamed Middle East tensions stoked supply fears and U.S. gasoline futures rallied following a fire at the largest operating refinery in the United States.

* U.S. Treasuries prices ended lower on Thursday as traders focused on a highly anticipated jobs report on Friday, and after minutes from the Federal Reserve's September policy meeting showed that Fed members were broadly in agreement over the need for additional stimulus.

LOCAL MARKETS CLOSE ON OCT. 4 * BSE index 19,058.15 points (up 1 pct) * NSE index 5,787.60 points (up 0.98 pct) * Rupee

51.74/75 per dollar (52.155/165)

* 10-year bond yield 8.15 pct (8.15 pct) * 5-year OIS rate 6.97 pct (6.96 pct) * 1-year OIS rate 7.58 pct (7.58 pct) * Call money 7.75/7.80 pct (8.05/8.10 pct) OVERNIGHT NEWS

* India's cabinet approved bills on Thursday to attract foreign investment into insurance and pensions among a package of new measures to restore confidence in the economy, although the reforms will face a tough fight in parliament.

* India has raised the subsidy on imported pulses to 20 rupees per kg from the earlier 10 rupees, Finance Minister P. Chidambaram said on Thursday after a cabinet meeting, a move which could increase imports.

KEY EVENTS TO WATCH

* India's central bank Governor Duvvuri Subbarao will meet bankers on Friday for a routine pre-policy discussion ahead of monetary policy review on Oct 30. (0800GMT)

* India weekly forex reserves, bank lending data. (1130GMT)

MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS

* Indian Oil Corp, the flagship national oil company of India, has priced a S$400m (US$325.5m) 10-year bond sale - the third deal in the Singapore dollar market from an Indian issuer. (IFR)

* The final pricing on Indian Railway Finance Corp's (Baa3/BBB-/BBB-) US$300m deal was 30bp inside initial guidance, the highest for an Indian issuer this year. (IFR)

* The US$150m three-year term loan for Rural Electrification Corp has been launched into general syndication via MLAs (mandated lead arrangers) and bookrunners State Bank of India and Sumitomo Mitsui Banking Corp. (IFR)

* U.S. private equity firm Carlyle Group

is selling its 3.7 percent stake in India's top mortgage lender Housing Development Finance Corp Ltd

in a deal to raise as much as $861 million, according to a term sheet seen by Reuters.

* Indian state-run firms Oil India Ltd

and Indian Oil Corp have jointly bought a 30 percent stake in Houston-based Carrizo Oil & Gas's

Niobrara shale asset in Colarado for $82.5 million, the companies said in a statement.

* Family-owned Indian conglomerate Hinduja Group is the front-runner to acquire Houghton International, a U.S. producer of metalworking fluids and other chemicals, following a $1.15 billion bid, according to two people familiar with the matter.

USD/INR NDFs (NY closing prices)

* For up-to-date prices, double click

Close Open High Low Volume 51.74-79 52.15 52.15 51.68 High

FII INVESTMENTS-EQUITIES (Net dollars)

Oct. 4* $182.20 mln# Month-to-date** $457.62 mln Year-to-date** $16.32 bln

* Provisional NSE data

** Source: Data as per custodial filing as on Oct. 4 on SEBI website.

#(As per Reuters conversion, $1 = 51.865 rupees)

FII INVESTMENTS-DEBT (Net Dollars)

* Debt Oct. 3 $6.71 mln Month-to-date $193.11 mln Year-to-date $4.99 bln

* Source: Data as per custodial filing as on Oct. 4 on SEBI website.

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

Oct. 4 Foreign Banks 0.10 bln Public Sector Banks -0.60 bln Private Sector Banks 7.42 bln Mutual Funds 0.60 bln Others 1.40 bln Primary Dealers -8.93 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. 4

* The Reserve Bank of India (RBI) on Thursday accepted all four bids for 68.5 billion rupees at its one-day repo auction, through which it injects liquidity into the banking system. It also accepted all 5 bids for 9.3 billion rupees at its reverse repo auction, through which it absorbs excess liquidity from the banking system.

* Indian banks' refinancing with RBI falls to 56.85 billion rupees.

* Indian banks' cash balances with RBI rise to 3.42 trillion rupees.

(Compiled by Subhadip Sircar)

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

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

Keywords: MARKETS INDIA FX DEBT/PREOPENER