India’s Stock Futures Swing Between Gain, Loss Before Expiry

Indian (SENSEX) stock-index futures swung between gains and losses before the expiry of the December futures contract today.

SGX S&P CNX Nifty Index futures for December delivery fell 0.8 percent to 5,915 at 9:41 a.m. in Singapore after adding 0.1 percent. The underlying S&P CNX Nifty (NIFTY) Index on the National Stock Exchange of India Ltd. gained 0.9 percent to 5,905.60 yesterday. The BSE India Sensitive Index, or Sensex, rose 0.8 percent to 19,417.46. The Bank of New York Mellon India ADR Index of U.S.-traded shares increased 0.2 percent.

“Volatility can be expected in the Indian markets ahead of the December expiry,” Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd., wrote in an e-mail yesterday.

Shares of Maruti Suzuki India Ltd. (MSIL), the nation’s biggest carmaker by volume, may move after chairman R.C. Bhargava said the company is considering setting up its first overseas assembly plant in Africa as it seeks to revive flagging exports.

Kingfisher Airlines Ltd. (KAIR) may move after the Indian Aviation Minister Ajit Singh said the carrier’s revival plan submitted to the industry regulator earlier this week was “only a wish,” and contained no funding plan.

The airline’s license was suspended in October after it halted services because of a strike by engineers and pilots demanding seven months of unpaid salaries.

The Sensex has risen 26 percent this year, headed for its biggest annual jump since 2009, as government steps to open the economy to offshore investment lured foreign funds.

Overseas funds were net buyers of domestic stocks for a 28th day on Dec. 24, the longest stretch of purchases since a record 41-day streak through Oct. 27, 2010. Foreign investors have bought a net $24.1 billion of Indian shares this year, the highest among 10 Asian markets tracked by Bloomberg, excluding China, data compiled by Bloomberg show.

The Sensex is valued at 15.3 times estimated earnings, compared with the MSCI Emerging Markets Index’s 12 times, data compiled by Bloomberg show.

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net

To contact the editor responsible for this story: Allen Wan at awan3@bloomberg.net

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