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Indian FX/debt factors to watch - Oct 10

GLOBAL MARKETS ROUNDUP

* Asian shares fell on Wednesday, led by losses intechnology and materials stocks after brokerage downgrades fortop chip maker Intel Corp

and a warning from globalminer Rio Tinto

about the uncertain near-term outlook.

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

* Oil prices jumped on Tuesday, snapping two sessions oflosses, as escalating turmoil on the border of Turkey and Syriaheightened concerns of a supply disruption in a tense MiddleEast.

* U.S. Treasuries prices rose on Tuesday as bleak views ofglobal growth and the upcoming earnings season promptedinvestors to dump riskier assets and pour money into safehavens.

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 yield8.14 pct (8.15 pct)* 5-year OIS rate6.96 pct (6.97 pct)* 1-year OIS rate7.57 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 anindustry starved of capital and squeezed by regulation - but itmay not pass parliament and it may not be enough.

* Economic growth across emerging markets eased in the thirdquarter of 2012, with Brazil and China being key areas ofweakness and some resilience in India and Russia, a survey foundon Wednesday.

* India should scrap a law that taxes asset transfersretrospectively, a government panel recommended in a draftreport that could save Britain's Vodafone

$2 billion.

* The steps Europe has taken to cure its economic ills willtake years to bear fruit and it will be a long time before thecontinent 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 atinternational Energy ministers meeting at 0430 GMT.

* US Federal Reserve Chairman Ben Bernanke will meet RBIGovernor Duvvuri Subbarao and the four deputy governors inMumbai at 1130 IST (0600 GMT) for lunch followed by aclosed-door meeting.

MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS

* Syndicate Bank, rated Baa2/BBB- by Moody's/S&P, launchedits US dollar bond on Tuesday, nearly a month after IDBI Banksold the last Indian bank deal. Final guidance on the bonds wasrevised 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 Volume52.96-00 52.92 53.02 52.75 Moderate

FII INVESTMENTS-EQUITIES (Net dollars)

Oct. 9* $116.50 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 = 52.7 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. 9Foreign Banks 18.18 blnPublic Sector Banks -25.63 blnPrivate Sector Banks 7.71 blnMutual Funds 4.05 blnOthers -4.66 blnPrimary Dealers 0.34 bln

Source: Clearing Corp of India Ltd

WEEKLY GOVERNMENT BOND AUCTIONS (In rupees)MATURITIES DATE AMOUNTTbills Oct. 10 100 blnBonds Oct. 12 130 blnINFLOWSSDL 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 26520.0091 days T-Bill Redemption Oct 12 112410.00182 days T-Bill Redemption Oct 12 50000.00SDL 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 26bids for 652.95 billion rupees ($12.5 billion) at its one-dayrepo auction, through which it injects liquidity into thebanking system. It said it did not get any bids at its reverserepo auction, through which it absorbs excess liquidity from thebanking system.

* Indian banks' refinancing with RBI rises to 141.14 billionrupees.

* Indian banks' cash balances with RBI fall to 2.6 trillionrupees.

(Compiled by Swati Bhat)

(swati.bhat@thomsonreuters.com; +91-22-61807353; ReutersMessaging: swati.bhat.thomsonreuters.com@reuters.net)

Keywords: MARKETS INDIA FX DEBT/PREOPENER