USD/INR was slam-dunk to 51.70 lows soon after the opening bell on Thu, down from 52.20 close yest. Bid EUR and hefty 3.0% rally on the local equity index weighed on the pairing, with passage of end-month bids also fanning the pair's bearish bias. Convincing pullback below tech support of 51.75 will expose 51.42 next. Bond yields meanwhile treaded water at 8.75% in early hours as improved risk-uptake supported at dips, while news of oversubscribed FII bond auctions yest weighed. Auction of USD 10bn increase in ceiling for FII interests in local bonds were oversubscribed according to sources cited by Reuters. Meanwhile in another sign of deteriorating public finances, Apr-Oct fiscal deficit stood at INR 3.1tr (USD 58.7bn) or accounting for 74% of full-year target and higher than 43% in the comparable period last year. Separately flagging a weak IP outcome, Oct infrastructure output eased to 0.1% y/y from 2.3% in Sep - slowest in nearly six years. Nov PMI-manufacturing and Oct trade numbers will be released shortly. RR
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