GLOBAL MARKETS ROUNDUP

* Wall Street rallied on Monday and global equities finished

their best year in the last three as U.S. lawmakers closed in on

a deal to avoid a budget crisis that many fear could cripple the

world economy in 2013.

* The dollar rose against most currencies on Monday in thin

trading, and held its gains even after President Barack Obama

said a deal was in sight to avert a fiscal disaster that would

have meant tax hikes and spending cuts for the world's largest

economy.

* Brent crude rose on Monday, closing 2012 up for the fourth

straight year after geopolitical threats to production offset

worries about flagging oil demand.

* U.S. Treasury debt prices eased on Monday with long,

30-year bonds falling over a point in price as lawmakers in

Washington came closer to reaching an agreement to avert the

'fiscal cliff.'

LOCAL MARKETS PREVIOUS CLOSE

* BSE index 19,426.71 (-0.09 pct)

* NSE index 5,905.10 (-0.06 pct)

* Rupee 54.99/55.00 per dollar (54.7550/7650)

* 10-year bond yield 8.05 pct (8.11 pct)

* 5-year OIS rate 7.12 pct (7.14 pct)

* 1-year OIS rate 7.60 pct (7.62 pct)

* Call money 8.90/9.00 pct (7.90/7.95 pct)

OVERNIGHT NEWS

* The White House and congressional lawmakers have reached a

deal to avoid the 'fiscal cliff' that would delay harsh spending

cuts by two months, Obama administration officials said on

Monday.

* India's current account deficit widened to a record high

of 5.4 percent of GDP in the September quarter as export growth

slowed more sharply than imports, with a similar gap expected in

the December quarter likely to prolong weakness in the rupee.

* The Reserve Bank of India will buy up to 80 billion rupees

of bonds via open market operations on Jan. 4, it said in a

statement on Monday.

* The central bank said on Monday a federal bond auction for

120 billion rupees ($2.18 billion) scheduled in the week ending

Jan. 4 has been shifted to the week ending Feb. 22.

MAJOR DEALS/ACQUISITIONS

* Bank of Maharashtra Ltd said issue of lower tier

II bonds of 10 billion rupees was fully subscribed and closed on

Dec. 29, 2012.

FII INVESTMENTS-EQUITIES (Net dollars)

Dec. 31* $151.53 mln#

Month-to-date ** $4.59 bln

Year-to-date** $24.37 bln

* Provisional NSE data

** Source: Data as per custodial filing as on Dec. 31 on

SEBI website.

#(As per Reuters conversion, $1 = 55.00 rupees)

FII INVESTMENTS-DEBT (Net Dollars)*

Debt

Dec. 28 $95.98 mln

Month-to-date $313.17 mln

Year-to-date $6.64 bln

* Source: Data as per custodial filing as on Dec. 31 on SEBI

website.

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

Dec. 31

Foreign Banks 14.72 bln

Public Sector Banks -38.38 bln

Private Sector Banks 34.66 bln

Mutual Funds -2.23 bln

Others -0.56 bln

Primary Dealers -8.22 bln

Source: Clearing Corp of India Ltd

ISSUANCES

ASSET DATE AMOUNT (IN RUPEES)

T-Bills Jan 2 100 bln

LIQUIDITY

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

all 49 bids for 1.57 trillion rupees at its one-day repo

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

It also accepted the sole bid for 500 million rupees at its

reverse repo auction, through which it absorbs cash from the

system.

* Indian banks' refinancing with RBI rises to 211.89 billion

rupees.

* Indian banks' cash balances with RBI falls to 2.76

trillion rupees.

(Compiled by Swati Bhat)

Keywords: MARKETS INDIA FX DEBT/PREOPENER

(swati.bhat@thomsonreuters.com)(+91-22-61807353)(Reuters Messaging: swati.bhat.thomsonreuters.com@reuters.net)

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