India’s Nifty Futures Swing Before Inflation, Production Data

Indian (SENSEX) stock-index futures swung between gains and losses before the release of consumer inflation and industrial output data today.

SGX CNX Nifty (NIFTY) Index futures for November delivery added 0.1 percent to 6,124 at 9:27 a.m. in Singapore after losing as much as 0.3 percent. The underlying CNX Nifty Index fell 1 percent to 6,078.80 yesterday, a four-week low. The S&P BSE Sensex declined 0.9 percent to the lowest since Oct. 17. The Bank of New York Mellon India ADR Index of U.S.-traded shares decreased 1.4 percent. One-month rupee forwards weakened for a fifth day.

Indian indexes slid yesterday as the rupee dropped to an eight-week low against the dollar, threatening to accelerate inflation. Consumer prices rose 9.9 percent in October from a year earlier, compared with 9.84 percent in September, according to the median of 28 estimates in a Bloomberg survey. Factory output may have increased 3.5 percent in September, from 0.6 percent in August, a separate Bloomberg survey showed.

“The rupee is the most important factor now,” Kishor Ostwal, managing director at CNI Research Ltd., said in a phone interview yesterday. “Inflation and factory output data will be keenly watched.”

Copper producer Hindalco Industries Ltd. (HNDL) may say its second-quarter profit rose to 3.85 billion rupees ($60.9 million) from 3.59 billion rupees a year earlier, according to the median of 26 analysts in a Bloomberg survey.

Net incomes at 17 of the 21 companies in the Sensex that have reported results 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.

Global investors bought a net $57 million of Indian equities on Nov. 8, a 25th day of purchases, data from the regulator show. That took this year’s inflows to $16.6 billion, the most after Japan among 10 Asian markets tracked by Bloomberg.

The Sensex has gained 5.5 percent this year and trades at 13.5-times projected 12-month earnings, the cheapest in more than two months. The MSCI Emerging Markets Index is valued at 10.4 times forecast profits.

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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