Indian (SENSEX) stock-index futures dropped, signaling benchmark indexes may decline for a fourth day, the longest losing streak in more than a month.
SGX CNX Nifty Index futures for May delivery fell 0.6 percent to 6,076.5 at 10:42 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index lost 0.3 percent to 6,094.50 yesterday. The S&P BSE Sensex slid 0.3 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares fell 1 percent.
Asian stocks outside of Japan declined today after U.S. Federal Reserve Chairman Ben S. Bernanke signaled monetary stimulus may be scaled back if the U.S. labor market continues to improve. Monetary easing by central banks from Europe to the U.S. and Japan has stoked inflows into emerging markets, helping prompt record purchases of Indian stocks by foreign funds this year. The Indian rupee dropped to its lowest level since November yesterday.
“There are no immediate triggers for stocks,” Jitendra Panda, head of broking at Capital First Ltd. in Mumbai, said by phone yesterday. “The currency weakness is causing some nervousness and caution.”
Overseas funds bought a net $487 million of Indian stocks on May 21, the biggest daily inflow since Feb. 7, according to data yesterday from the market regulator. The funds bought a net $883 million worth of equities last week, the most since the period ended Feb. 8.
The Sensex has rebounded 10 percent since falling to a seven-month low on April 9, as foreign funds boosted equity purchases amid easing by global central banks. The gauge trades at 13.8 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s 10.6 times.
State Bank of India, the nation’s largest lender, may report today fourth-quarter profit of 37.4 billion rupees ($674 million), according to the median of 41 analyst estimates in a Bloomberg survey. That compares with 50.4 billion rupees a year earlier.
Tata Steel Ltd. (TATA), India’s biggest producer of the alloy, may post a group profit of 3.07 billion rupees for the three months ended March, compared with 4.33 billion last year, the median forecast of 21 analysts in a Bloomberg survey shows.
Bharat Heavy Electricals Ltd. (BHEL), the largest Indian maker of power equipment, may report net income of 27.2 billion rupees, according to a Bloomberg survey of 25 analysts.
Profit at just three of the 18 Sensex companies that have reported March-quarter results so far has trailed analyst estimates, data compiled by Bloomberg show. Net income at about 43 percent of the 30 index companies missed forecasts in the three months ended Dec. 31, compared with 40 percent in the previous two quarters.
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