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Indian FX/debt factors to watch - Oct 10

Tuesday, 9 Oct 2012 | 11:13 PM ET

GLOBAL MARKETS ROUNDUP

* Asian shares fell on Wednesday, led by losses in technology and materials stocks after brokerage downgrades for top chip maker Intel Corp

and a warning from global miner Rio Tinto

about the uncertain near-term outlook.

* The dollar and the yen firmed on Wednesday, as investors shied away from risk on concerns about weak earnings in the United States due to a slowdown in global growth.

* Oil prices jumped on Tuesday, snapping two sessions of losses, as escalating turmoil on the border of Turkey and Syria heightened concerns of a supply disruption in a tense Middle East.

* U.S. Treasuries prices rose on Tuesday as bleak views of global growth and the upcoming earnings season prompted investors to dump riskier assets and pour money into safe havens.

LOCAL MARKETS CLOSE ON OCT. 9

* BSE index

18,793.36 points (+0.45 pct)

* NSE index

5,704.60 points (+0.50 pct)

* Rupee

52.72/73 per dollar (52.64/65)

* 10-year bond yield 8.14 pct (8.15 pct) * 5-year OIS rate 6.96 pct (6.97 pct) * 1-year OIS rate 7.57 pct (7.58 pct) * Call money

8.00/8.05 pct (8.05/8.10 pct)

OVERNIGHT NEWS

* India's proposal to allow more foreign investment in its $41 billion insurance business provides a lifeline for an industry starved of capital and squeezed by regulation - but it may not pass parliament and it may not be enough.

* Economic growth across emerging markets eased in the third quarter of 2012, with Brazil and China being key areas of weakness and some resilience in India and Russia, a survey found on Wednesday.

* India should scrap a law that taxes asset transfers retrospectively, a government panel recommended in a draft report that could save Britain's Vodafone

$2 billion.

* The steps Europe has taken to cure its economic ills will take years to bear fruit and it will be a long time before the continent returns as a major driver of economic growth, U.S. Treasury Secretary Timothy Geithner said on Tuesday.

KEY EVENTS TO WATCH * India prime minister Manmohan Singh to speak at international Energy ministers meeting at 0430 GMT.

* US Federal Reserve Chairman Ben Bernanke will meet RBI Governor Duvvuri Subbarao and the four deputy governors in Mumbai at 1130 IST (0600 GMT) for lunch followed by a closed-door meeting.

MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS

* Syndicate Bank, rated Baa2/BBB- by Moody's/S&P, launched its US dollar bond on Tuesday, nearly a month after IDBI Bank sold the last Indian bank deal. Final guidance on the bonds was revised down to 360bp +/-5bp over US Treasuries. (IFR)

USD/INR NDFs (NY closing prices)

* For up-to-date prices, double click

Close Open High Low Volume 52.96-00 52.92 53.02 52.75 Moderate

FII INVESTMENTS-EQUITIES (Net dollars)

Oct. 9* $116.50 mln# Month-to-date** $645.07 mln Year-to-date** $16.50 bln

* Provisional NSE data

** Source: Data as per custodial filing as on Oct. 5 on SEBI website.

#(As per Reuters conversion, $1 = 52.7 rupees)

FII INVESTMENTS-DEBT (Net Dollars)

* Debt Oct. 4 $70.15 mln Month-to-date $263.26 mln Year-to-date $5.06 bln

* Source: Data as per custodial filing as on Oct. 5 on SEBI website.

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

Oct. 9 Foreign Banks 18.18 bln Public Sector Banks -25.63 bln Private Sector Banks 7.71 bln Mutual Funds 4.05 bln Others -4.66 bln Primary Dealers 0.34 bln

Source: Clearing Corp of India Ltd

WEEKLY GOVERNMENT BOND AUCTIONS (In rupees) MATURITIES DATE AMOUNT Tbills Oct. 10 100 bln Bonds Oct. 12 130 bln INFLOWS SDL 09.17%, 2022 Interest Oct 11 618.98 (2 States) S09.20%, 2022 Interest Oct 11 690.00 (ANDHRA PRADESH) 7.83% 2018 Interest Oct 11 25056.00 7.80% 2021 Interest Oct 11 26520.00 91 days T-Bill Redemption Oct 12 112410.00 182 days T-Bill Redemption Oct 12 50000.00 SDL 05.85%, 2015 Interest Oct 13 1594.87 (27 States) SDL 08.39%, 2020 Interest Oct 13 209.75 (WEST BENGAL) SDL 08.56%, 2020 Interest Oct 13 342.40 (PUNJAB) SDL 08.57%, 2020 Interest Oct 13 1071.25 (2 States) SDL 08.58%, 2020 Interest Oct 13 1072.50 (2 States) For detailed table, see: LIQUIDITY, as of Oct. 9

* The Reserve Bank of India (RBI) on Tuesday accepted all 26 bids for 652.95 billion rupees ($12.5 billion) at its one-day repo auction, through which it injects liquidity into the banking system. It said it did not get any bids at its reverse repo auction, through which it absorbs excess liquidity from the banking system.

* Indian banks' refinancing with RBI rises to 141.14 billion rupees.

* Indian banks' cash balances with RBI fall to 2.6 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