RBI COUNTER
* DAILY LAF TENDERS: One set of 1-day reverse repo (at 7.00%) and 1-day repo (at 8.00%). Bids for repo tender may be submitted between 0930 IST and 1030 IST, and reverse repo between 1900 IST and 1930 IST.
* TERM REPO TENDER: One set of 14-day variable rate term repo for 155 bln rupees. Bids may be submitted between 1100 and 1130 IST.

MARKETS
Call  : May open 20-30 bps above repo rate on demand from banks to meet funding needs. 1-day call: 8.20-8.30% vs 8.20-8.25% Monday.
Bonds : May take opening cues from oil prices, US treasury yields. Seen in narrow range intraday. 10-yr bond yield: 7.90-7.98% vs 7.93% Monday.
Rupee : Seen steady on lack of major cues. Month-end importer dollar buys to weigh. Asian units, NDF eyed. Range: 63.55-63.75/$1 vs 63.66/$1 Monday.
Stocks: Indices seen range bound; government reforms eyed Nifty range: 8200-8300, Monday-end 8246.30, up 45.60 points.

RBI's REPO RATE ON DEMAND

 
RBI COUNTER
* DAILY LAF TENDERS: One set of 1-day reverse repo (at 7.00%) and 1-day repo (at 8.00%). Bids for repo tender may be submitted between 0930 IST and 1030 IST, and reverse repo between 1900 IST and 1930 IST.

MARKETS
Call  : Seen opening tad above RBI's repo rate on demand from banks to meet reserve needs. 1-day call: 8.00-8.15% vs 7.35-7.60% 2-day Saturday.
Bonds : May take cues from crude oil price, US treasuries. 10-year bond yield: 7.94-8.00% vs 7.97% Friday.
Rupee : May open down as dollar firm vs euro. Sell orders by exporters may check sharp fall. Range: 63.45-63.70/$1 vs 63.57/$1 Friday.
Stocks: Seen consolidating; bias bearish; auto cos in focus; Nifty range: 8145 - 8250, Friday-end 8200.70, up 26.60 points.

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RBI COUNTER & MARKETS NEWS

 

RBI COUNTER

* DAILY LAF TENDERS: One set of 3-day reverse repo (at 7.00%) and 3-day repo (at 8.00%). Bids for repo tender may be submitted between 0930 IST and 1030 IST, and for reverse repo between 1900 IST and 1930 IST.

* TERM REPO: One set of 14-day variable rate term repo for 185 bln rupees. Bids may be submitted between 1100 and 1130 IST.

* GILT AUCTIONS: RBI to auction 20 bln rupees of 8.08%, 2022 bond, 60 bln rupees of 8.15%, 2026 bond, 30 bln rupees of 9.20%, 2030 bond, and 30 bln rupees of 8.30%, 2040 bond.

MARKETS

Call  : Seen opening 30-40 bps above RBI's repo rate on demand from banks to meet reserve needs. 3-day call: 8.30-8.40% vs 7.95-8.00% 2-day Wed.

Bonds : Steady as participants likely to stay off big buys before auction. Value buying may support. 10-yr bond yield: 7.91-7.98% vs 7.96% Wed.

Rupee : Seen weak as dollar to remain firm against major units. Dollar sales to check fall. Range: 63.40-63.80/$1 vs 63.51/$1 Wed.

Stocks: Seen opening marginally up, but may remain in thin range. Nifty range: 8150-8280, Wednesday-end 8174.10, down 92.90 points.

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DATA ALERT

> US MBA MORTGAGE APPLICATIONS SURVEY for week ended Dec 19. 1730 IST

> US UNEMPLOYMENT INSURANCE CLAIMS REPORT for wk ended Dec 20. 1900 IST

> US DJ-BTMU BUSINESS BAROMETER for wk ended Dec 13. 2030 IST

> US EIA PETROLEUM STATUS REPORT for wk ended Dec 19. 2100 IST

> US EIA NATURAL GAS STORAGE REPORT for wk ended Dec 19. 2230 IST

RBI COUNTER

* DAILY LAF TENDERS: One set of 2-day reverse repo (at 7.00%) and 2-day repo (at 8.00%). Bids for repo tender may be submitted between 0930 IST and 1030 IST, and for reverse repo between 1900 IST and 1930 IST.

* T-BILL AUCTION: RBI to hold auctions of 80 bln rupees of 91-day T-bills, and 50 bln rupees of 364-day T-bills.

MARKETS

Call  : Seen opening 20-30 bps above RBI's repo rate on demand from banks to meet reserve needs. 2-day call: 8.20-8.30% vs 8.00% 1-day Tuesday.

Bonds : To take cues from oil prices, US treasuries. Players may stay off big bets before holiday Thu. 10-year bond yield: 7.91-7.96% vs 7.92% Tue.

Rupee : To open weak as dollar may strengthen on strong US GDP data. To track Asian units and NDF. Range: 63.2000-63.5500/$1 vs 63.2800/$1 Tue.

Stocks: To remain choppy amid rollovers due to F&O expiry. Nifty range: 8200-8350, Tuesday-end: 8267.00, down 57.00 points.

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Stocks with uptick in rollover activity on the D-2

JSW Steel (JSTL IN): On the D-2, rollovers stand at 61% as against 12% on the D-3.The open interest is currently at ~5.98 mn shares. Long aggression was seen during the day a roll levels moved from ~70bps (profit to short rollers) to ~80bps towards the end.

HDFC Bank (HDFCB IN): Rollovers picked up to ~54% as compared to 28% on D-3.The counter holds an OI of ~42.4mn shares. The stock has been in the news on account of its proposed fund raising plans. Long roll aggression was evident as roll levels were ~100-105bps (profit to short roller).

Reliance Industries (RIL IN): Rollovers picked up to ~45% as compared to 21% on D-3. The counter holds an OI of ~37mn shares. Roll levels (profit to short roller) were ~85-90bps during the day.

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STOCKS

 

STOCKS

    ASIA: Shares of financial companies were the largest gainers. Daiwa Securities Group soared 4% and Sumitomo Mitsui Financial Group was up 3.5%.

    --Nikkei 225: 17485.59 today, up 275.54 points or 1.60% vs Thursday.

    --S&P ASX 200: 5302.50 today, up 91.72 points or 1.76% vs Thursday.

    EUROPE: Shares of Seadrill Ltd, Afren PLC and Aker Solutions ASA rose by 10.6%,8.7% and 9.2% respectively.

    --EURO STOXX: 3051.99 Thursday, up 02.00 points or 0.07% vs Wednesday

    --FTSE 100: 6336.48 Thursday, up 4.65 points or 0.07% vs Wednesday

    US: Further, the fall in the number of Americans filing for first-time unemployment benefits by 6,000 to 289,000 in the week ended Dec 13 boosted sentiment. Stocks of technology and pharmaceutical companies were the lead gainers.

    --DJIA: 17778.15 Thursday, up 421.28 points or 2.43% vs Wednesday

    --S&P 500: 2061.23 Thursday, up 48.34 points or 2.40% vs Wednesday

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