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Indian FX/debt factors to watch - Oct 8

GLOBAL MARKETS ROUNDUP

* Asian stocks edged lower on Monday and other riskierassets such as commodities fell as investors remained cautiousabout the outlook for the global economy and corporate earningsdespite better-than-expected U.S. jobs numbers at the end oflast week.

* The dollar held steady versus the yen on Monday andhovered near a two-week high hit late last week after a surprisedrop in the U.S. unemployment rate soothed investor concernsabout the U.S. economy's outlook.

* Oil prices fell in volatile trading on Friday and postedweekly losses as a fragile global economy and uncertainty aboutEurope's debt crisis offset support from a better-than-expectedU.S. employment report.

* U.S. Treasuries prices fell on Friday as an unexpecteddrop in the U.S. jobless rate helped boost expectations for animproving economy and as dealers prepared for new long-dateddebt sales next week.

LOCAL MARKETS CLOSE ON OCT. 6

* BSE index

18,938.46 points (-0.63 pct)

* NSE index

5,746.95 points (- 0.70 pct)

* Rupee

51.85/86 per dollar (52.74/75)

* 10-year bond yield8.16 pct (8.15 pct)* 5-year OIS rate7.00 pct (6.97 pct)* 1-year OIS rate7.60 pct (7.58 pct)* Call money

7.10/7.20 pct (7.75/7.80 pct)

OVERNIGHT NEWS

* India looks set to begin dismantling a complex web ofregulatory requirements that throttle its infrastructure growth,with plans to set up a special body this week to speed upprojects in a sector seen as vital to reviving economicmomentum.

* India's capital markets regulator on Saturday permittedloss-making listed firms to raise funds by selling shares,making it easier for such firms to meet their capital needs.

KEY EVENTS TO WATCH

* An Indian ministerial panel will meet (starting at 0700GMT) to make its final recommendations on a plan to ask oldertelcos to pay for their existing airwave holding at a price tobe derived in an upcoming 2G auction.

MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS

* Etihad Airways, Abu Dhabi's flag carrier which hasexpanded globally through stake purchases in firms like AirBerlin

and Virgin Australia, will look toextend its geographical reach to India and other Asian markets.

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

* Carlyle Group LP

has raised $841 million in India'sfourth-biggest equity deal this year by selling its remaining3.7 percent stake in the country's top mortgage lender, HousingDevelopment Finance Corp Ltd (HDFC), said a source with directknowledge of the deal.

* State explorer Oil India plans to raise $100 million inoffshore loans by December to part-fund its stake buy in CarrizoOil & Gas's Niobrara shale asset. Oil India and Indian Oil Corphave jointly bought a 30 percent stake in the Niobrara shaleacreage in Colorado for $82.5 million. (IFR)

USD/INR NDFs (NY closing prices)

* For up-to-date prices, double click

Close Open High Low Volume52.22-27 52.15 52.26 51.90 High

FII INVESTMENTS-EQUITIES (Net dollars)

Oct. 5* $822.68 mln#Month-to-date** $645.07 mlnYear-to-date** $16.50 bln

* Provisional NSE data

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

#(As per Reuters conversion, $1 = 51.9 rupees)

FII INVESTMENTS-DEBT (Net Dollars)

*DebtOct. 4 $70.15 mlnMonth-to-date $263.26 mlnYear-to-date $5.06 bln

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

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

Oct. 5Foreign Banks -17.21 blnPublic Sector Banks 23.25 blnPrivate Sector Banks 0.95 blnMutual Funds -0.15 blnOthers 13.10 blnPrimary Dealers -19.94 bln

Source: Clearing Corp of India Ltd

WEEKLY GOVERNMENT BOND AUCTIONS (In rupees)MATURITIES DATE AMOUNTBond Sale Oct. 5 130 blnINFLOWSSDL 07.65%, 2019 Interest Oct 08 191.25(WEST BENGAL)SDL 08.20%, 2019 Interest Oct 08 123.00(PUNJAB)SDL 08.21%, 2019 Interest Oct 08 205.25(RAJASTHAN)SDL 08.22%, 2019 Interest Oct 08 904.20(2 States)SDL 08.23%, 2019 Interest Oct 08 617.25(GUJARAT)SDL 08.24%, 2019 Interest Oct 08 103.53(2 States)SDL 08.27%, 2019 Interest Oct 08 723.63(MAHARASHTRA)SDL 08.36%, 202 Interest Oct 08 418.00(PUNJAB)SDL 08.36%, 2021 Interest Oct 08 1337.60(2 States)SDL 08.39%, 2021 Interest Oct 08 209.75(UTTARAKHAND)SDL 08.47%, 2019 Interest Oct 08 635.25(UTTAR PRADESH)SDL 08.49%, 2019 Interest Oct 08 424.50(BIHAR)SDL 08.50%, 2018 Interest Oct 08 340.00(KERALA)SDL 08.55%, 2018 Interest Oct 08 90.54(JAMMU & KASHMIR)SDL 08.89%, 2018 Interest Oct 08 444.50(UTTAR PRADESH)SDL 07.77%, 2019 Interest Oct 09 349.65(2 States)SDL 08.31%, 2017 Interest Oct 09 300.12(MAHARASHTRA)SDL 08.32%, 2017 Interest Oct 09 811.20(2 States)SDL 08.40%, 2017 Interest Oct 09 840.00(WEST BENGAL)6.30% 2023 Interest Oct 09 4095.00SDL 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 25056.007.80% 2021 Interest Oct 11 26520.00For detailed table, see:LIQUIDITY, as of Oct. 5

* The Reserve Bank of India (RBI) on Friday accepted acombined 220.7 billion rupees worth of bids at its twinthree-day repo auctions, through which it injects liquidity intothe banking system. It also accepted all 16 bids for 202.30billion rupees at its reverse repo auction, through which itabsorbs excess liquidity from the banking system.

* Indian banks' refinancing with RBI falls to 42.79 billionrupees.

* Indian banks' cash balances with RBI fall to 3.24 trillionrupees.

(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