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Indian FX/debt factors to watch - May 31

GLOBAL MARKETS ROUNDUP * Asian shares recovered on Friday as global markets recovered overnight after lacklustre U.S. data eased concerns about an early end to the Federal Reserve's strong stimulus programme, which has sharpened investor appetite for risk. * The dollar hovered near a three-week low against the euro on Friday after unexpectedly weak U.S. economic data dampened expectations the Fed will cut its monetary stimulus soon. * Crude oil futures ended mixed on Thursday, with Brent falling on a weak global economic outlook and U.S. crude lifted by optimism about the Fed's stimulus programme. * U.S. Treasuries traded nearly unchanged on Thursday as investors waited for clues about future moves by the Fed. LOCAL MARKETS PREVIOUS CLOSE * BSE index 20,215.40 (0.34 pct) * NSE index 6,124.05 (0.32 pct) * Rupee 56.38/39 per dollar (56.17/18) * 10-year bond yield 7.44 pct (7.39 pct) * 5-year OIS rate 6.90 pct (6.87 pct) * 1-year OIS rate 7.17 pct (7.13 pct) * Call money 6.70/6.80 pct (7.25/7.30 pct) FACTORS TO WATCH * India will release the GDP data for the quarter through March at 0530 GMT. * India is likely to release the fiscal deficit data for April-March at 0730 GMT. * Foreign reserves, bank lending data to be released by RBI 1230 GMT. MAJOR DEALS/ACQUISITIONS * Essel Group has borrowed 4.1 bln rupees ($72.9 mln) three-tranche facility to fund its capex and meet working capital requirements. * Hetero Wind Power raised a 2.89 bln rupees-equivalent dual tranche 14-year loan via ICICI Bank. * Gujarat State Petroleum Corp and Adani Group are jointly developing the Mundra LNG terminal and are preparing to raise debt facility for its construction USD/INR NDFs (NY closing prices) * For up-to-date prices, double click Close Open High Low Volume 56.92-94 56.57 57.08 56.50 High FII INVESTMENTS-EQUITIES (Net dollars) May 30* $139.5 mln# Month-to-date** $3.76 bln Year-to-date** $15.09 bln * Provisional NSE data ** Source: Data as per custodial filing as on May 30 on SEBI website. #(As per Reuters conversion, $1 = 56.4 rupees) FII INVESTMENTS-DEBT (Net Dollars) * Debt May 29 -$207.41 mln Month-to-date $1.37 bln Year-to-date $4.73 bln * Source: Data as per custodial filing as on May 30 on SEBI website. GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees) May 30 Foreign Banks -14.20 bln Public Sector Banks 24.09 bln Private Sector Banks -10.22 bln Mutual Funds -2.20 bln Others 7.66 bln Primary Dealers -5.12 bln Source: Clearing Corp of India Ltd MONEY MARKET INFLOWS (mln rupees) Instrument Payment Date Amount 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 28 bids for 972.80 billion rupees at its one-day repo auction, through which it injects liquidity into the banking system. It accepted all six bids for 12.10 billion rupees at its one-day reverse repo auction, through which it absorbs excess liquidity from the banking system.Ÿ * Indian banks' refinancing with RBI falls to 207.52 billion rupees. * Indian banks' cash balances with RBI rise to 2.92 trillion rupees. (Compiled by Archana Narayanan)