GLOBAL MARKETS ROUNDUP

* Financial markets across Asia and Western Europe were

either closed or closing early on Monday, abandoning the field

as the U.S. Congress and the White House battled it out for a

solution to the impending 'fiscal cliff'.

* The yen held above a two-year low versus the dollar on

Monday but remained on track for its largest annual drop in

seven years, pressured by expectations for more forceful

monetary easing by the Bank of Japan.

* Oil prices settled lower on Friday after U.S. data showed

a sharp rise in gasoline inventories and as investors worried

that U.S. budget negotiators may not reach a deal in time to

avert a fiscal crisis that could erode oil demand.

* U.S. benchmark Treasury debt prices rose for a third

consecutive session on Friday on safe-haven buying as hopes

faded for a deal to avoid tax hikes and spending cuts that could

throw the U.S. economy back into recession.

LOCAL MARKETS PREVIOUS CLOSE

* BSE index 19,444.84 (0.63 pct)

* NSE index 5,908.35 (0.65 pct)

* Rupee 54.7550/7650 per dollar (54.93/94)

* 10-year bond yield 8.11 pct (8.11 pct)

* 5-year OIS rate 7.14 pct (7.15 pct)

* 1-year OIS rate 7.62 pct (7.63 pct)

* Call money 7.90/7.95 pct (8.00/8.10 pct)

KEY FACTORS/EVENTS TO WATCH

* RBI to release current account, balance of payments data

for Sept. quarter. (1130GMT)

* Fiscal deficit, infrastructure data for November.

OVERNIGHT NEWS

* India will start implementing new global capital rules

for banks, known as Basel III, from April 1, 2013 rather than

the beginning of January, the Reserve Bank of India said on

Friday.

* India will borrow a total of 1.4 trillion rupees ($25.48

billion) between January and March by selling treasury bills,

the finance ministry said in a statement on Friday.

* Risks to India's macro-economic stability have increased

on the back of an economic slowdown, high inflation, and

ballooning fiscal and current account deficits, the Reserve Bank

of India said in a report on Friday.

USD/INR NDFs (NY closing prices)

* For up-to-date prices, double click

Close Open High Low Volume

55.15-20 55.12 55.21 55.13 Moderate

FII INVESTMENTS-EQUITIES (Net dollars)

Dec. 28* $151.98 mln#

Month-to-date** $4.43 bln

Year-to-date** $24.21 bln

* Provisional NSE data

** Source: Data as per custodial filing as on Dec. 28 on

SEBI website.

#(As per Reuters conversion, $1 = 54.81 rupees)

FII INVESTMENTS-DEBT (Net Dollars)*

Debt

Dec. 27 -$162.86 mln

Month-to-date $217.19 mln

Year-to-date $6.55 bln

* Source: Data as per custodial filing as on Dec. 28 on SEBI

website.

GOVERNMENT SECURITIES TRADING (Net buy/sell, in rupees)

Dec. 28

Foreign Banks 6.46 bln

Public Sector Banks -18.30 bln

Private Sector Banks 3.01 bln

Mutual Funds 5.97 bln

Others 6.08 bln

Primary Dealers -3.22 bln

Source: Clearing Corp of India Ltd

MONEY MARKET INFLOWS

INSTRUMENT PAYMENT DATE AMT (IN MLN RUPEES)

SDL 09.38%, 2018 Interest Dec 31 375.20

(WEST BENGAL)

SDL 09.40%, 2018 Interest Dec 31 235.00

(ANDHRA PRADESH)

SDL 09.59%, 2018 Interest Dec 31 479.50

(UTTAR PRADESH)

For full table:

ISSUANCES

ASSET DATE AMOUNT (IN RUPEES)

T-Bills Jan 2 100 bln

LIQUIDITY

* The Reserve Bank of India (RBI) said on Friday it accepted

all 72 bids for 1.4 trillion rupees at its three-day repo

auctions, through which it injects cash into the banking system.

It accepted all 7 bids for 22.45 billion rupees at its three-day

reverse repo auction.

* Indian banks' refinancing with RBI falls to 213.31 billion

rupees.

* Indian banks' cash balances with RBI fall to 2.91 trillion

rupees.

(Compiled by Subhadip Sircar)

Keywords: MARKETS INDIA FX DEBT/PREOPENER

(subhadip.sircar@thomsonreuters.com)(+91-22-61807201)(Reuters Messaging: subhadip.sircar.thomsonreuters.com@reuters.net)

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