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USD/INR looks to finish a third consecutive...>

INDIA
INDIA: USD/INR looks to finish a third consecutive session lower, but still
stops short of making a serious test of last week's lows at 68.3837. The Lok
Sabha (lower house of parliament) elections have now officially begun, with
political rallies taking centre stage. Final results aren't due until 23rd May.
-Foreign capital flows appear to be moving in favour of Indian assets once more,
helping both the currency and domestic equities this week. Latest NDSL data
shows global funds were net buyers of Indian sovereign bonds and stocks
Wednesday and today's pullback in oil prices (particularly Brent) will have
helped.
-Bloomberg data shows net capital flows into Indian equities and bonds now sits
at $8.7bln YTD, outpaced only by Mexico among other EM nations.
-CPI and industrial production data due Friday becomes the next focus but are
released after the markets close. CPI is expected to rise to +2.8%, with
industrial production at +2.0%. India are also to sell $2.47bln in bonds across
four lines Friday.

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