India’s Nifty Futures Advance Before Inflation, Production Data

Indian stock-index futures gained before the government releases consumer-price inflation and industrial production data today.

SGX CNX Nifty Index futures for February delivery rose 0.5 percent to 6,104 at 9:42 a.m. in Singapore. The underlying CNX Nifty Index increased 0.2 percent to 6,062.70 yesterday. The S&P BSE Sensex (SENSEX) gained 0.1 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares added 1.5 percent.

Consumer prices rose at the slowest pace in two years in January, according to a Bloomberg survey of analysts, signaling central bank Governor Raghuram Rajan’s pledge to prioritize the fight against inflation may be working. A separate report may show a contraction in industrial output slowed in December.

“CPI inflation will set a clear direction for the market in terms of inflationary expectations,” Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services Ltd., wrote in an e-mail.

Consumer prices accelerated 9.2 percent in January, the slowest pace since February 2012, according to the median estimate of 36 analysts. The Reserve Bank of India unexpectedly increased the benchmark repurchase rate by a quarter-point to 8 percent on Jan. 28 to curb inflation.

Industrial production may have contracted 1.1 percent in December, compared with 2.1 percent the previous month, a separate survey of 38 analysts showed.

Earnings Reports

Shares of Tata Steel Ltd. (TATA), India’s biggest producer, may be active. The company reported quarterly net income of 5.03 billion rupees ($80.8 million) after the market closed yesterday, falling short of the 6.68 billion-rupee median estimate of analysts surveyed by Bloomberg. The stock rose 1.9 percent yesterday.

Coal India Ltd. (COAL), the world’s biggest producer, may report profit of 38.15 billion rupees ($613 million) for the quarter ended Dec. 31, compared with 43.95 billion rupees a year earlier, according to the median estimate of 30 analysts surveyed by Bloomberg.

Drugmaker Cipla Ltd. (CIPLA) may say profit rose 13 percent from a year earlier to 3.82 billion rupees, according to a Bloomberg survey of 25 analysts.

Seventeen out of 22 Sensex companies, or 77 percent, that have reported earnings for December quarter so far have beaten or matched analyst estimates, compared with 70 percent in the September quarter and 47 percent three months earlier.

International investors sold a net $70.4 million of Indian shares on Feb. 10, extending this year’s outflow to $296 million, according to data compiled by Bloomberg. They invested $20 billion last year, the most in Asia after Japan, and $24.6 billion in 2012, the data show.

The Sensex has lost 3.8 percent this year and trades at 12.8 times projected 12-month profits, near the cheapest since August. The MSCI Emerging Markets Index is valued at 9.2 times.

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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