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India Stock-Index Futures Rise After Reliance Profit, U.S. Talks

Indian (SENSEX) stock-index futures climbed after Reliance Industries Ltd. (RIL) posted earnings that topped analyst estimates and U.S. lawmakers said they made progress on a budget accord for the world’s largest economy.

SGX CNX Nifty Index futures for October delivery increased 1 percent to 6,204 at 10:23 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index on the National Stock Exchange of India Ltd. rose 0.3 percent to 6,112.70 yesterday. The S&P BSE Sensex advanced 0.4 percent and the Bank of New York Mellon India ADR Index of U.S.-traded shares gained 1.5 percent.

Reliance, owner of the world’s biggest refinery complex, said net income rose 1.5 percent to 54.9 billion rupees ($892 million), versus the 54.2 billion-rupee median of 25 analyst estimates compiled by Bloomberg. U.S. Senate Democratic and Republican leaders said they made progress toward an accord that would end a partial government shutdown and prevent the nation from breaching its debt ceiling.

“We expect an up move in the markets on the back of good numbers from Reliance,” Surya Narayan Nayak, an analyst at Networth Stock Broking Ltd., said by phone from Mumbai today. “Some positive news on the U.S. debt ceiling is helping too.”

The Sensex has climbed 6.1 percent this year and is valued at 14 times estimated 12-month profits, compared with 10.7 times for the MSCI Emerging Markets Index, according to data compiled by Bloomberg.

Tata, HDFC

Tata Consultancy Services Ltd. (TCS) and HDFC Bank (HDFCB) Ltd. are scheduled to report quarterly results today. Tata Consultancy, India’s largest software exporter, may say net income rose about 29 percent from a year earlier to 45.3 billion rupees, according to the median of 45 analyst estimates.

HDFC Bank, the nation’s largest lender by market value, will probably say profit climbed 26 percent to 19.7 billion rupees, according to the median of 38 estimates.

About 47 percent of Sensex companies that posted earnings for the quarter ended June missed analyst estimates. That compares with 27 percent for the March quarter and 43 percent in the three months through December, data compiled by Bloomberg show.

India’s consumer-price index rose 9.84 percent in September from a year earlier, exceeding the 9.5 percent median estimate in a Bloomberg survey of economists, data from the Central Statistics Office showed after markets closed yesterday.

Global investors bought a net $122.7 million of local stocks on Oct. 10, taking this year’s inflow to $14 billion, according to data from the markets regulator.

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

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

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