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India’s Nifty Futures Swing Between Gains, Losses in Singapore

Indian (SENSEX) stock-index futures swung between gains and losses after earnings at the world’s biggest coal producer jumped and before key economic data is released this week.

SGX CNX Nifty Index futures for May delivery were little changed at 6,074 at 10:40 a.m. in Singapore. The contract expires on May 30. The underlying CNX Nifty (NIFTY) Index rallied 1.7 percent to 6,083.15 yesterday. The S&P BSE Sensex also surged 1.7 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares fell for a fifth day, the longest losing streak since September.

The Sensex rose the most since May 15 yesterday, rebounding from the worst loss in nine weeks last week. Coal India Ltd. (COAL) reported after the market closed yesterday a better-than-forecast 35 percent increase in fourth-quarter net income to 54.1 billion rupees ($973 million). India reports gross domestic product data for the quarter ended March 31 and economic growth forecasts for the current quarter on May 30.

“This week will be volatile, since it will include the derivatives expiry as well as GDP data,” Nagji K Rita, Chairman of Inventure Growth & Securities Ltd., wrote in an e-mail yesterday.

Sun Pharmaceutical Industries Ltd. (SUNP), India’s most valuable drugmaker, may say today its fourth-quarter profit climbed 12 percent to 9.17 billion rupees, according to the median estimate of 32 analysts in a Bloomberg survey.

Foreign Flows

State-run GAIL India Ltd. (GAIL), the nation’s top gas transporter, may report a 78 percent jump in net income to 8.6 billion rupees, according to the median of 37 analyst estimates in a Bloomberg survey.

Hindalco Industries Ltd. (HNDL), India’s second-largest copper producer, may report a 40 percent drop in its fourth-quarter profit to 3.87 billion rupees, according to the median estimate of 25 analysts in a Bloomberg survey.

Profits at four of 22 Sensex companies that have posted March-quarter results so far have trailed analysts’ estimates, compared with 43 percent in the previous three months.

Foreign funds were net sellers of Indian stocks for the first time in 26 days on May 24, according to data from the market regulator. Overseas investors sold a net $32.7 million worth of stocks, paring this year’s investment to $14.5 billion, still a record for the period.

Monetary easing by global central banks has stoked inflows into emerging markets including India. Flows have accelerated since the Reserve Bank of India lowered interest rates for the third time this year on May 3.

The Sensex has climbed 3.1 percent this year and is valued at 13.8 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s 10.5 times.

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

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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