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India’s Nifty Futures Drop Before Infosys Earnings, Factory Data

Indian stock-index futures dropped before Infosys (INFO) Ltd. reports earnings and the government releases factory output data today.

SGX CNX Nifty Index futures for January delivery fell 0.4 percent to 6,165.5 at 10 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index lost 0.1 percent to 6,168.35 yesterday. The S&P BSE Sensex dropped less than 0.1 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares added 0.3 percent.

Infosys may report profit of 27 billion rupees ($435 million) for the quarter ended Dec. 31, according to the median estimate of 36 analysts in a Bloomberg survey. That compares with 23.7 billion rupees in the same period a year earlier. Data today may show industrial production grew 0.8 percent in November, after a 1.8 percent contraction the previous month, 37 economists surveyed by Bloomberg forecast.

“The quarter’s earnings could be a mood booster, but we wouldn’t jump the gun on either material earnings upgrades or the market,” Aditya Narain and Jitender Tokas, analysts at Citigroup Global Markets Inc., wrote in a note dated yesterday.

The Sensex has declined 2.2 percent this year amid a slowdown in manufacturing output, the fastest consumer-price inflation in at least two years and economic growth that’s stayed below 5 percent for four straight quarters. The measure rose 9 percent last year.

International investors bought a net $27.1 million of Indian (SENSEX) shares on Jan. 8, the first inflow in four days, data compiled by Bloomberg show. They invested $20 billion last year, the most in Asia after Japan, and $24.6 billion in 2012, the data show.

The Sensex trades at 13 times projected 12-month profits, the cheapest since August, data compiled by Bloomberg show. The measure’s 30-day volatility index, a gauge of price swings, dropped to the lowest level since March yesterday. The MSCI Emerging Markets Index is valued at 10.1 times forward earnings.

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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