Indian stock-index futures slid after benchmark gauges declined for a second day yesterday.
SGX CNX Nifty Index futures for May delivery fell 0.2 percent to 6,801.0 at 9:40 a.m. in Singapore. The underlying CNX Nifty Index on the National Stock Exchange of India Ltd. sank 0.3 percent to 6,761.25 yesterday. The S&P BSE Sensex (SENSEX) lost 0.3 percent to 22,631.61. The Bank of New York Mellon India ADR Index of U.S.-traded shares gained 0.6 percent to 1,204.23.
Bharti Airtel Ltd. (BHARTI), India’s largest mobile-phone operator, reports earnings today. The Sensex climbed to a record last week amid speculation an election victory for the main opposition Bharatiya Janata Party party will spur investment and boost economic growth. Opinion polls suggest the BJP will secure the most seats, ending the Congress Party’s decade-long rule. Counting begins May 16.
“Profit booking is likely to drag for some time, but such dips will be used by traders to add more positions,” Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services Ltd., said by e-mail yesterday. “A short-term correction will be healthy for the market.”
Bharti Airtel may say fourth-quarter profit doubled to 10 billion rupees, according to the median estimate of 26 analysts in a Bloomberg survey. Other companies reporting earnings include Sesa Sterlite Ltd. (SSLT) and Jindal Steel & Power Ltd.
Six out of the eight Sensex companies that have reported earnings for the three months ended March 31 have either exceeded or matched estimates.
Overseas investors bought a net $42.1 million of Indian shares on April 25, taking this year’s inflows to $5.05 billion.
The Sensex has climbed 6.9 percent this year and trades at 14.2 times projected 12-month profits, compared with the average multiple of 14.5 over the past five years. The MSCI Emerging Markets Index has dropped 0.8 percent in 2014 and is valued at 10.4 times.
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