India’s Nifty Futures Drop After Indexes Rose to Three-Year High

Indian (SENSEX) stock-index futures dropped after benchmark indexes gained to a three-year high yesterday.

SGX CNX Nifty (NIFTY) Index futures for October delivery fell 0.5 percent to 6,204 at 10:07 a.m. in Singapore. The underlying CNX Nifty Index rose 0.3 percent to 6,204.95 yesterday, its highest level since Nov. 10, 2010. The S&P BSE Sensex added 0.1 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares climbed 0.5 percent.

Benchmark indexes increased yesterday as more companies posted earnings that beat analysts’ forecasts. The Sensex is valued at 14.1 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s 10.8 times. The Indian gauge’s 14-day relative strength index climbed to 67.6 yesterday, near the 70-level seen by some investors as a signal to sell.

“Some stocks have run up a lot in the recent rally,” Suniil Pachisia, vice president at Pratibhuti Viniyog Ltd., said in a phone interview today. “We are advising clients to book profits and wait for a better opportunity.”

Asian stocks fell today, with regional benchmark MSCI Asia Pacific Index retreating from a five-month high as investors await the release of delayed U.S. payrolls data.

Profits at all seven Sensex companies that have reported earnings for the quarter through Sept. 30 so far have beaten or matched estimates, compared with 47 percent that missed forecasts in the three months ended June.

Wipro Ltd. (WPRO), the third-largest software exporter, may report today that its second-quarter profit expanded to 18.4 billion rupees ($299 million), according the median estimate of 44 analysts in a Bloomberg survey.

Global investors bought a net $281 million of local stocks on Oct. 18, the largest daily inflow in a month, data from the regulator show. That brought this year’s purchases to $14.9 billion, the second-highest after Japan among 10 Asian markets tracked by Bloomberg. It’s still 17 percent less than in the same period last year, according to data compiled by Bloomberg.

The Sensex has risen 7.6 percent this year, compared with the MSCI Emerging Markets Index’s 1.6 percent loss.

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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