India’s Nifty Index Futures Decline Amid Slowing Foreign Inflow

Indian stock-index futures fell after the benchmark rallied the most in a week yesterday.

SGX CNX Nifty Index futures for November delivery fell 0.7 percent to 6,094 at 9:43 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index climbed 2 percent to 6,115.35 yesterday. The S&P BSE Sensex rebounded 1.9 percent after losing 3.2 percent in the previous three days. The Bank of New York Mellon India ADR Index of U.S.-traded shares rose 0.3 percent.

International investors bought a net $2.7 million of local shares on Nov. 22, according to data from the market regulator. Foreign funds purchased a net $13.4 million of Indian stocks in the three days through Nov. 22, compared with an average $128 million a day in a 30-day buying spree that began on Oct. 3, the data show.

“The market is seeing a slowdown in terms of inflows and it’s a little disturbing given that we have had a very good season in the last two-to-three months,” Taher Badshah, co-head of equities at Motilal Oswal Asset Management Co., wrote in an e-mail yesterday. “It’s in line with what is happening in emerging Asia as well.”

Indian (SENSEX) stocks have lured $17.2 billion of inflows this year, the highest after Japan among 10 Asian markets tracked by Bloomberg.

Iranian Oil

The Sensex advanced the most in Asia yesterday amid speculation falling oil prices will cool inflation after Iran agreed to limit its nuclear program in exchange for relief from some sanctions.

The lifting of a European Union ban on insuring tankers carrying Iranian oil as part of a nuclear deal will ease the process of buying the Persian Gulf state’s crude, according to Indian refiners. China, Japan and India are the world’s three biggest buyers of Iranian crude.

Shares of IBDI Bank Ltd. (IDBI) may move. Standard & Poor’s cut the company’s credit rating to BB+/B yesterday, with a negative outlook, saying it expects “the bank’s asset quality to remain weak over the next 12 to 18 months.”

The Sensex has gained 6.1 percent this year, the largest increase among the four biggest emerging markets, and trades at 13.5 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s 10.6 times.

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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