India’s Nifty Futures Swing After Biggest Index Loss in 5 Weeks

Indian (SENSEX) stock-index futures swung between gains and losses after benchmark indexes dropped by the most in more than five weeks yesterday.

SGX CNX Nifty Index futures for November delivery fell 0.2 percent to 6,277 at 10 a.m. in Singapore after adding as much as 0.3 percent. The underlying CNX Nifty (NIFTY) Index lost 1 percent to 6,253.15 yesterday, the biggest drop since Sept. 30. The S&P BSE Sensex declined 1.3 percent, the first loss in six days. The Bank of New York Mellon India ADR Index of U.S.-traded shares slid 0.9 percent.

International investors were net purchasers of Indian stocks for the 21st consecutive day on Nov. 1, the longest buying streak since May, according to data from the market regulator. Foreign funds bought $4.92 billion of the nation’s shares in the two months through Oct. 31, helping drive a 14 percent rebound in the Sensex.

“Overseas fund inflows will continue to support the markets, but we expect some consolidation after a sharp rally,” Supreeth Shankarghal, Bangalore-based chief executive officer at Quant First Asset Advisors India, which manages about $100 million in options, said by phone. “This will happen as some investors went gung-ho without much reason.”

Foreign investors have bought a net $16.4 billion of Indian stocks this year, the biggest inflow after Japan among 10 Asian markets tracked by Bloomberg.

Power equipment maker Bharat Heavy Electricals Ltd. (BHEL) may report today profit of 8.05 billion rupees ($131 million) for the quarter ended Sept. 30, according to the median estimate of 38 analysts.

Net incomes at 16 of the 19 companies in the Sensex that have posted results so far exceeded analyst estimates, according to data compiled by Bloomberg. About 47 percent of the 30 companies in the index missed forecasts in the previous quarter.

The Sensex has risen 8 percent this year, the biggest gain among the four-largest emerging markets, and trades at 13.9 times projected 12-month profits, in line with its five-year average. The MSCI Emerging Markets Index is valued at 10.6 times forecast earnings.

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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