India’s Nifty Futures Swing Between Gains, Losses on U.S. Data

Indian (SENSEX) stock-index futures swung between gains and losses amid data that signaled the global economy may be strengthening.

SGX CNX Nifty Index futures for March delivery fell less than 0.1 percent to 5,904 at 10:19 a.m. in Singapore after gaining 0.1 percent. The underlying CNX Nifty (NIFTY) Index jumped 0.8 percent to 5,863.30 yesterday, its highest close since Feb. 20. The S&P BSE Sensex index rose 0.8 percent to 19,413.54. The Bank of New York Mellon India ADR Index of U.S.-traded shares climbed 1.4 percent to the highest level since Feb. 1.

Indian stocks advanced the most in Asia yesterday on speculation central banks from the U.S. to Europe, the nation’s biggest markets, will continue stimulus measures to support growth. The MSCI Asia Pacific Index climbed today after data showed yesterday that jobless claims in the U.S. dropped and the Japanese economy exited a recession.

“Positive U.S. data and the Federal Reserve’s recent assurance over monetary policy have led to an increase in investors’ risk appetite,” Nidhi Sarswat, a senior research analyst at Bonanza Portfolio Ltd., wrote in an e-mailed note yesterday. “Some minor consolidation may be seen as investors may book profits in rallies.”

The European Union accounted for 17.2 percent of India’s exports in the six months ended September 2011, according to the commerce ministry, making it India’s largest trading partner, while 11 percent of Indian shipment went to the U.S. in the six months ended September 2011.

Technology Exporters

“A recovery in the Western world certainly augurs well for technology exporters,” Aneesh Srivastava, who oversees $531 million as chief investment officer at IDBI Federal Life Insurance Co. in Mumbai, said yesterday.

Shares of Mahindra & Mahindra Ltd. (MM), India’s biggest maker of sport-utility vehicles, may be active after workers called off a strike at the company’s Nashik plant.

Overseas funds bought a net $119 million of Indian stocks on March 6 as money returned to local shares after the biggest net sale in about a year on Feb. 28, data compiled by Bloomberg show. Foreigners have bought a net $8.6 billion worth of shares this year, a record for the period, the data show. They purchased a net $24.5 billion worth of shares last year, the most among 10 Asian markets tracked by Bloomberg.

The Sensex trades at 13.7 times projected 12-month profits, compared with 14.3 times on Jan. 25, when the gauge climbed to a two-year high, data compiled by Bloomberg show. That compares with the MSCI Emerging Markets Index’s 10.4 times.

To contact the reporter on this story: Shikhar Balwani in Mumbai at

To contact the editor responsible for this story: Darren Boey at

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