U.S. Treasury debt prices rose on Wednesday, even after records of the Federal Reserve's January meeting showed policymakers discussed the slowing or stopping of Fed bond purchases that are aimed at reducing unemployment.
FACTORS TO WATCH
* The budget session of parliament begins with the President's speech at 1100 IST (0530 GMT), which coincides with the second day of a nationwide strike by trade unions angry with the government's inaction on price rise and alleged violation of labour laws.
* Sri Lanka central bank governor Ajith Nivard Cabraal, Colombo Stock Exchange Chairman Krishan Balendra, and Securities and Exchange Commission of Sri Lanka Chairman Nalaka Godahewa to be in Mumbai for an "Invest Sri Lanka" forum. They will give a media briefing at 12 pm (0630 GMT).
* India's auction of quotas allowing foreign investors to buy bonds attracted solid demand, reflecting expectations that the central bank will cut interest rates and that the government will deliver a fiscally disciplined budget.
* Indian banks' advances continued to limp at the end of 10 months of the financial year 2012-13 compared with a year earlier, but bankers expect a late demand from corporates and loans to the farm sector to prop up growth before the year-end on March 31.
* Malaysia's AirAsia Bhd, Asia's largest budget carrier, plans to launch a regional airline in India in a venture with the Tata group, marking a return to aviation for India's biggest business house.
* The RBI said on Wednesday it accepted all 34 bids for 1.22 trillion rupees at its one-day repo auction, through which it injects cash into the banking system. It also accepted the sole bid for 400 million rupees at its reverse repo auction, through which it absorbs cash from the system.
* Indian banks' refinancing with RBI rises to 209.67 billion rupees.
* Indian banks' cash balances with RBI rise to 2.87 trillion rupees.