Indian Stock Futures Little Changed After Four Weeks of Gains

Indian stock-index futures swung between gains and losses before companies from Larsen & Toubro Ltd. (LT) to Asian Paints Ltd. report earnings and after benchmark indexes rose for four straight weeks.

SGX CNX Nifty Index futures for July delivery fell less than 0.1 percent to 6,042.5 at 9:44 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index on the National Stock Exchange of India Ltd. slid 0.2 percent to 6,029.20 on July 19. The S&P BSE Sensex rose 0.1 percent to 20,149.85. The Bank of New York Mellon India ADR Index of U.S.-traded shares lost 0.1 percent to 1,028.55.

Reliance Industries Ltd., the owner of the world’s largest refining complex, reported after the market closed last week that profit beat analyst estimates for the fifth straight quarter. Larsen & Toubro’s first quarter profit may rise to 9.11 billion rupees ($153 million) from 8.64 billion rupees a year earlier, according to the median estimate of analysts in a Bloomberg News survey.

Reliance Industries (RIL)’ profit for April-June period climbed 19 percent to 53.5 billion rupees from a year earlier, it said in a July 19 exchange filing. That beat the median 52.5 billion rupees forecast by analysts in a Bloomberg survey. The stock has the second-highest weighting in the Sensex.

India’s S&P BSE Infotech index of 10 software makers is trading at levels last seen during the 2000 dotcom bubble as an economic recovery in the U.S. and a weakening rupee boost earnings prospects.

Global investors sold $19 million of local shares on July 18, paring this year’s inflows to $12.3 billion, data compiled by Bloomberg show. Overseas funds have sold a net $1 billion of Indian (SENSEX) stocks this month, the most among 10 Asian markets tracked by Bloomberg, extending June’s $1.8 billion sell-off.

The Sensex has gained 3.7 percent this year and trades at 14 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s 9.9 times.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net

To contact the editor responsible for this story: Michael Patterson at mpatterson10@bloomberg.net

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