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Indian FX/debt factors to watch - May 27

GLOBAL MARKETS ROUNDUP * Japan's Nikkei index slid 3.0 percent in early trade on Monday, following on from a 3.5 percent slide last week in breath-taking volatility that no doubt left many investors shaken. * The dollar dipped against the yen in early Asian trade on Monday after marking its worst week in a year on Friday, as volatility in Japanese stocks and bonds pulled it well away from its highest level in 4-1/2 years. * Brent oil prices crept higher on Friday, as traders exited short positions ahead of a long holiday weekend in the United States, but the weekly percentage drop was still the biggest in more than a month. * U.S. Treasuries prices edged up on Friday as traders evaluated the likelihood of the U.S. Federal Reserve pulling back on bond purchases this year and whether the recent selloff was overdone. LOCAL MARKETS PREVIOUS CLOSE * BSE index 19,704.33 (0.15 pct) * NSE index 5,983.55 (0.28 pct) * Rupee 55.63/64 per dollar (55.59/60) * 10-year bond yield 7.34 pct (7.38 pct) * 5-year OIS rate 6.76 pct (6.78 pct) * 1-year OIS rate 7.09 pct (7.11 pct) * Call money 7.30/7.35 pct (7.20/7.30 pct) OVERNIGHT NEWS * The Indian government doesn't think the central bank has slowed the pace of its bond purchase programme, economic affairs secretary Arvind Mayaram said on Friday. FACTORS TO WATCH * Indian Prime Minister Singh travels to Japan, eyes civil nuclear deal. MAJOR DEALS/ACQUISITIONS * London-headquartered Vedanta Resources (Ba1/BB/BB+) is expected to launch into general syndication next week its $1.2 bln five-year term loan A, which forms part of a $2.5 bln financing. * Reliance Industries is expected to send out invitations to banks next week for its $2 bln loan. The deal could have a three and a 5.5-year tranche. * State-owned Oil India has extended the deadline to respond to its request for proposals for a $250 mln financing to June 7 from May 28. * The $400 mln five-year term loan for Jindal Steel & Power has been launched to general syndication via mandated lead arrangers and bookrunners - ANZ, Bank of America Merrill Lynch, Barclays, BNP Paribas, Credit Agricole CIB, Deutsche Bank, RBS and Standard Chartered Bank. * Directory search provider Just Dial's 17.5 mln-share IPO, the qualified institutional portion of 9.1 mln shares was 10 times subscribed while the retail portion of 1.7 mln shares was 3.5 times subscribed. * Adani Port is expected to launch its $150 mln-$200 mln offer for sale next week to increase the free-float from 22.5 percent to 25 pct before the June 3 regulatory deadline. USD/INR NDFs (NY closing prices) * For up-to-date prices, double click Close Open High Low Volume 56.14-16 55.85 56.17 55.96 High FII INVESTMENTS-EQUITIES (Net dollars) May 24* $42.96 mln# Month-to-date** $3.42 bln Year-to-date** $14.71 bln * Provisional NSE data ** Source: Data as per custodial filing as on May 24 on SEBI website. #(As per Reuters conversion, $1 = 55.63 rupees) FII INVESTMENTS-DEBT (Net Dollars) * Debt May 23 -$442.65 mln Month-to-date $1.74 bln Year-to-date $5.09 bln * Source: Data as per custodial filing as on May 24 on SEBI website. GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees) May 24 Foreign Banks 16.92 bln Public Sector Banks -66.75 bln Private Sector Banks 44.23 bln Mutual Funds 4.28 bln Others -4.29 mln Primary Dealers 5.62 bln Source: Clearing Corp of India Ltd MONEY MARKET INFLOWS (mln rupees) Instrument Payment Date Amount SDL 07.44%, 2019 Interest May 27 186.00 (RAJASTHAN) SDL 07.45%, 2019 Interest May 27 372.50 (ANDHRA PRADESH) SDL 07.50%, 2019 Interest May 27 562.50 (WEST BENGAL) SDL 07.53%, 2019 Interest May 27 564.75 (UTTAR PRADESH) SDL 08.03%, 2019 Interest May 27 128.48 (PUNJAB) SDL 08.05%, 2019 Interest May 27 1479.59 (3 States) SDL 08.05%, 2020 Interest May 27 201.25 (RAJASTHAN) SDL 08.06%, 2019 Interest May 27 201.50 (RAJASTHAN) SDL 08.07%, 2020 Interest May 27 766.65 (3 States) SDL 08.09%, 2020 Interest May 27 488.43 (GUJARAT) SDL 08.10%, 2019 Interest May 27 980.06 (2 States) SDL 08.10%, 2020 Interest May 27 405.00 (UTTAR PRADESH) SDL 08.66%, 2021 Interest May 27 433.00 (UTTAR PRADESH) SDL 08.67%, 2021 Interest May 27 433.50 (ANDHRA PRADESH) SDL 08.68%, 2021 Interest May 27 868.00 (2 States) SDL 05.70%, 2014 Interest May 28 2414.13 (19 States) SDL 08.39%, 2018 Interest May 28 83.90 (UTTARAKHAND) SDL 08.50%, 2018 Interest May 28 212.50 (KERALA) SDL 08.51%, 2018 Interest May 28 425.50 (UTTAR PRADESH) SDL 08.52%, 2018 Interest May 28 426.00 (WEST BENGAL) SDL 08.68%, 2018 Interest May 28 244.82 (JAMMU & KASHMIR) 10.00% 2014 Interest May 30 1166.63 10.25% 2021 Interest May 30 13434.33 9.81% 2013 Redemption May 30 115395.50 91 days T-Bill Redemption May 30 84327.75 364 days T-Bill Redemption May 31 50000.00 For full table: ISSUANCE SECURITY AMOUNT (IN BLN RUPEES) DATE T-Bill 120 May 29 LIQUIDITY * The Reserve Bank of India accepted all 28 bids for 818.55 billion rupees at its three-day repo auction, through which it injects liquidity into the banking system. It accepted the sole bid for 50 mln at the reverse repo auction, through which it absorbs excess liquidity from the banking system. * Indian banks' refinancing with RBI falls to 157.54 billion rupees. * Indian banks' cash balances with RBI falls to 2.91 trillion rupees. (Compiled by Archana Narayanan)