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Indian FX/debt factors to watch - May 30

GLOBAL MARKETS ROUNDUP * Asian shares and the dollar were pressured on Thursday, undermined by an overnight pullback in global equities as investors assessed the implications of a potential softening of the Federal Reserve's massive monetary stimulus programme. * The dollar remained under pressure in early Asian trading on Thursday, after tumbling more than one percent against the yen in the previous session, on growing expectations that the U.S. Federal Reserve will maintain its stimulus for the time being. * Oil futures slid nearly 2 percent on Wednesday, as U.S. equity markets slid lower and investors worried about an uncertain demand outlook for the global economy following weak growth forecasts for China. * U.S. Treasury debt prices gained on Wednesday after expectations that the Federal Reserve could pare back its massive stimulus pushed yields to 13-month highs in early trading. LOCAL MARKETS PREVIOUS CLOSE * BSE index 20,147.64 (-0.07 pct) * NSE index 6,104.30 (-0.11 pct) * Rupee 56.17/18 per dollar (55.9550/9650) * 10-year bond yield 7.39 pct (7.36 pct) * 5-year OIS rate 6.87 pct (6.83 pct) * 1-year OIS rate 7.13 pct (7.12 pct) * Call money 7.25/7.30 pct (7.20/7.30 pct) FACTORS TO WATCH * Reserve Bank of India Governor Duvvuri Subbarao is scheduled to deliver a lecture in the western city of Ahmedabad at 1130 GMT. MAJOR DEALS/ACQUISITIONS * The $125 mln seven-year term loan for Amtek Auto is likely to be wrapped up soon with the drawdown of the facility tentatively planned for June 6. * A 160 mln share offer for sale in Jaypee Infratech is set to raise 5.6 bln rupees ($100 mln) at the indicative price of 35.05 rupees. USD/INR NDFs (NY closing prices) * For up-to-date prices, double click Close Open High Low Volume 56.58-60 56.62 56.68 56.50 High FII INVESTMENTS-EQUITIES (Net dollars) May 29* $114.6 mln# Month-to-date** $3.61 bln Year-to-date** $14.92 bln * Provisional NSE data ** Source: Data as per custodial filing as on May 29 on SEBI website. #(As per Reuters conversion, $1 = 56.2 rupees) FII INVESTMENTS-DEBT (Net Dollars) * Debt May 28 -$6.6 mln Month-to-date $1.58 bln Year-to-date $4.93 bln * Source: Data as per custodial filing as on May 29 on SEBI website. GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees) May 29 Foreign Banks -48.70 bln Public Sector Banks 61.24 bln Private Sector Banks 37.26 bln Mutual Funds -1.55 bln Others -7.16 bln Primary Dealers -41.09 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 Bonds 150 May 31 Inflation indexed 10 June 4 Federal debt LIQUIDITY * The Reserve Bank of India accepted all 26 bids for 848.60 billion rupees at its one-day repo auction, through which it injects liquidity into the banking system. It did not receive any bids at its one-day reverse repo auction, through which it absorbs excess liquidity from the banking system.Ÿ * Indian banks' refinancing with RBI rises to 246.4 billion rupees. * Indian banks' cash balances with RBI rise to 2.91 trillion rupees. (Compiled by Archana Narayanan)