Indian FX/debt factors to watch – March 2

Publish date : 2 March, 2015

KATHMANDU, March 2: GLOBAL MARKETS ROUNDUP
* Asian stocks got off to a steady start on Monday as soft
U.S. data was partially offset by a weekend interest rate cut by
China, while the dollar hit a five-week high against the
euro.
* The flagging euro probed fresh one-month lows early on
Monday in a subdued start to the week, while an interest rate
cut in China over the weekend gave commodity currencies only a
fleeting boost.
* Oil fell about 1 percent on Monday after posting its first
monthly rise since June, pressured by continued weakness in
China’s vast manufacturing sector and higher Libyan crude
output.
* U.S. Treasuries appeared on track on Friday for their
biggest monthly loss since May 2013 after strength in U.S.
economic data over the month boosted expectations the Federal
Reserve would take a less dovish stance on monetary policy.

LOCAL MARKETS PREVIOUS CLOSE
* BSE index 29,361.50 (up 0.48 pct)
* NSE index 8,901.85 (up 0.65 pct)
* Rupee 61.83/84 per dollar (61.75/76)
* 10-year bond yield 7.72 pct (7.74 pct)
* 5-year OIS rate 6.97 pct (6.96 pct)
* 1-year OIS rate 7.67 pct (7.67 pct)
* Call money 7.25/7.30 pct (6.80/6.85 pct)

FACTORS TO WATCH
* HSBC Markit Manufacturing PMI
* Greenlam Industries, demerged unit of Greenply Industries
, to list on NSE and BSE later in the day

OVERNIGHT NEWS
* Indian Finance Minister Arun Jaitley on Saturday
announced a budget that put boosting growth before painful
reforms, slowing the pace of fiscal deficit cuts and seeking to
put domestic and foreign capital to work.

KEY DEALS
* A number of big-ticket offerings of rupee bonds are
expected to hit the markets in the next two weeks and, sources
say, Indian Railway Finance Corp, Power Grid Corp of India and
Power Finance Corp are the likely issuers
* India’s Inox Wind plans to launch its up to Rs9bn
(US$145m) IPO in March. The draft prospectus indicated that the
wind turbine-maker plans to issue new shares for up to Rs7bn and
an offer for sale of 20m shares for the remaining amount.Gujarat
Fluorochemicals, which owns a 75% stake, is the selling
shareholder.

USD/INR NDFs (NY closing prices)
For up-to-date prices, double click
Open High Low Close Volume
62.16 62.17 61.90 61.92-96 NA

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)
Feb. 26
Foreign Banks                      -29.20 bln
Public Sector Banks                  1.87 bln
Private Sector Banks                 9.32 bln
Mutual Funds                        14.10 bln
Others                               7.96 bln
Primary Dealers                     -4.06 bln

LIQUIDITY
* The Reserve Bank of India said on Friday it accepted all
20 bids for 82.74 billion rupees ($1.34 billion) at its
three-day repo auction, through which it injects liquidity into
the banking system.
* Indian banks’ refinancing with RBI flat at 72.65 billion
rupees.
* Indian banks’ cash balances with RBI rise to 3.48 trillion
rupees.

(Compiled by Abhishek Vishnoi)

Reuters