×

Indian FX/debt factors to watch - Oct 9

GLOBAL MARKETS ROUNDUP

* Asian shares rose on Tuesday but were capped by concerns over global growth prospects, especially in the world's second-biggest economy China, and expected weak U.S. corporate earnings.

* The euro was on the back foot on Tuesday as uncertainty about Spain persisted after euro zone ministers said the country did not need a bailout yet, dashing hopes they might inch closer to an aid deal.

* Oil prices eased on Monday in choppy trading on concerns slower economic growth in China and the debt crisis in Europe will curb demand for petroleum, while the potential for the Middle East turmoil to disrupt supplies limited losses.

LOCAL MARKETS CLOSE ON OCT. 8

* BSE index

18,708.98 points (-1.21 pct)

* NSE index

5,676.00 points (-1.23 pct)

* Rupee

52.64/65 per dollar (51.85/86)

* 10-year bond yield 8.15 pct (8.16 pct) * 5-year OIS rate 6.97 pct (7.00 pct) * 1-year OIS rate 7.58 pct (7.60 pct) * Call money

8.05/8.10 pct (7.10/7.20 pct)

OVERNIGHT NEWS

* China's economic growth is expected to weaken to 7.8 percent this year, the International Monetary Fund said on Tuesday as it warned of risks to emerging Asia if the euro zone crisis worsens and the United States does not avoid its "fiscal cliff".

* India's factory output likely grew a modest 1.1 percent annually in August after barely growing at all in July, indicating weak domestic and global demand, a Reuters poll showed.

* Indian state-fuel retailers will marginally cut gasoline prices from Tuesday, reflecting a strengthening rupee, the country's largest fuel retailer Indian Oil Corp

said on Monday. KEY EVENTS TO WATCH

* U.S. Treasury Secretary Timothy Geithner, Fed Chairman Ben Bernanke on two-day visit to India.

* Banking technology summit in Mumbai starting 0430 GMT.

MAJOR DEALS/EXTERNAL COMMERCIAL BORROWINGS

* National carrier Air India has once again postponed the deadline for bid submissions for its proposed jumbo 74 billion rupees ($1.3bn) 19-year bond sale to Oct. 12. The company is hoping to get an unconditional guarantee soon. (IFR)

* Indian Oil Corp and Power Grid Corp of India met arrangers to finalise plans for new sales. While IOC is said to be looking to tap the short-tenor segment of below three years, PGCIL may opt for a a tenor over five years. (IFR)

* Power Finance Corp, meanwhile, has raised the allocation by another 150 million rupees per arranger for its dual tranche sale, which was priced last week. Nineteen arrangers bid for the sale, totalling 31.35 billion rupees, bankers said. The two- and five-year bonds pay coupons of 8.85 percent and 8.91 percent, respectively. The issue settled between Oct. 4 to 8. (IFR)

USD/INR NDFs (NY closing prices)

* For up-to-date prices, double click

Close Open High Low Volume 52.68-73 52.60 52.87 52.65 Moderate

FII INVESTMENTS-EQUITIES (Net dollars)

Oct. 8* $107.19 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 = 52.6 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. 8 Foreign Banks 8.61 bln Public Sector Banks -19.09 bln Private Sector Banks 2.25 bln Mutual Funds -0.20 bln Others -2.76 bln Primary Dealers 11.18 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 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 4095.00 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 26520.00For detailed table, see: LIQUIDITY, as of Oct. 8

* The Reserve Bank of India (RBI) on Monday accepted all 25 bids for 611.80 billion rupees ($11.7 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 falls to 38.84 billion rupees.

* Indian banks' cash balances with RBI steady at 3.24 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