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Indian FX/debt factors to watch - May 29

GLOBAL MARKETS ROUNDUP * Asian shares were steady and the dollar remained firm on Wednesday as U.S. stocks rallied to record highs overnight on signs of resilience in the U.S. economy and expectations of continued monetary policy support. * The dollar gained broadly in early Asian trade on Wednesday after robust economic data boosted Treasury yields and raised expectations that the Fed may make an early exit from its easing scheme, making the greenback more attractive. * Brent crude gained more than $1 on Tuesday as U.S. consumer optimism and signs of easier monetary policy from central banks pushed stock markets higher, while increasing Middle East tension also supported oil. * Yields on U.S. Treasuries surged to a 13-month peak on Tuesday as stocks hit another record high and investors, worried the Fed could slow its massive bond-buying program, proved reluctant to buy more U.S. debt in an auction of two-year notes. LOCAL MARKETS PREVIOUS CLOSE * BSE index 20,160.82 (+0.65 pct) * NSE index 6,111.25 (+0.46 pct) * Rupee 55.9550/9650 per dollar (55.5675/5775) * 10-year bond yield 7.36 pct (7.34 pct) * 5-year OIS rate 6.83 pct (6.77 pct) * 1-year OIS rate 7.12 pct (7.08 pct) * Call money 7.20/7.30 pct (7.30/7.35 pct) FACTORS TO WATCH * Money Supply data is scheduled to be released by the central bank at 1230 GMT MAJOR DEALS/ACQUISITIONS * Anil Ambani-owned Reliance Communications aims to sign its 67.50 bln rupees ($1.2 bln) seven-year loan in June. This will be the first long-term rupee debt of the company which has largely been borrowing abroad. * Reliance Infrastructure is planning a foreign currency convertible bond, sources aware of the development told IFR. The company is in talks with a few banks for the mandate but the deal might materialise only if price discussions meet the expectations of the company, sources added. * The Indian government plans to sell an 11.36 pct stake in power developer NHPC and has invited proposals from banks to manage the offer. * Ten banks are handling Adani Port's $150 mln-$200 mln offer for sale scheduled for this week. * The $250 mln four-year term loan for Power Finance Corp has been allocated. USD/INR NDFs (NY closing prices) * For up-to-date prices, double click Close Open High Low Volume 56.46-48 56.25 56.40 56.21 High FII INVESTMENTS-EQUITIES (Net dollars) May 28* $127.08 mln# Month-to-date** $3.43 bln Year-to-date** $14.74 bln * Provisional NSE data ** Source: Data as per custodial filing as on May 28 on SEBI website. #(As per Reuters conversion, $1 = 55.96 rupees) FII INVESTMENTS-DEBT (Net Dollars) * Debt May 27 -$106.56 mln Month-to-date $1.59 bln Year-to-date $4.94 bln * Source: Data as per custodial filing as on May 28 on SEBI website. GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees) May 28 Foreign Banks -26.24 bln Public Sector Banks 45.51 bln Private Sector Banks -30.47 bln Mutual Funds 0.30 bln Others 2.20 mln Primary Dealers 8.70 bln Source: Clearing Corp of India Ltd MONEY MARKET INFLOWS (mln rupees) Instrument Payment Date Amount 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 Bonds 150 May 31 LIQUIDITY * The Reserve Bank of India accepted all 27 bids for 950.75 billion rupees at its one-day repo auction, through which it injects liquidity into the banking system. It accepted the sole bid for 250 mln at the reverse repo auction, through which it absorbs excess liquidity from the banking system. * Indian banks' refinancing with RBI falls to 214.55 billion rupees. * Indian banks' cash balances with RBI rise to 2.88 trillion rupees. (Compiled by Archana Narayanan)