Indian stock-index futures gained as Asian shares rebounded and the country’s government opened a $20 billion market for real-estate investment trusts.
SGX CNX Nifty Index futures for August delivery rose 0.7 percent to 7,643 at 10:43 a.m. in Singapore. The underlying CNX Nifty Index (NIFTY) on the National Stock Exchange of India Ltd. fell 1.1 percent to 7,568.55 on Aug. 8. The S&P BSE Sensex (SENSEX) declined 1 percent to 25,329.14. The Bank of New York Mellon India ADR Index of U.S.-traded shares rose 0.3 percent to 1,337.45.
The MSCI Asia Pacific Index climbed from the lowest level in almost two months as Israel and militants in the Gaza Strip agreed to an Egyptian proposal for a 72-hour truce while Russia sought to de-escalate the conflict in Ukraine. India’s capital-market regulator approved the setting up and listing of REITS.
“Indian markets will react to global news flow and how the geopolitical tensions play out,” Arun Kejriwal, a director at Kejriwal Research & Investment Pvt., said by phone from Mumbai. “We expect the market to trade in a range in the short term, reacting to global cues, local earnings and policy announcements by the government.”
India’s property developers, including DLF Ltd. (DLFU) and Unitech Ltd. (UT), may be active today. The REITS, will have to own assets worth at least 5 billion rupees ($82 million), according to a statement from the Securities and Exchange Board of India in New Delhi yesterday. Investors will have to put a minimum 200,000 rupees into REITs.
Tata Motors Ltd. (TTMT), owner of Jaguar Land Rover, may say its first-quarter group profit more than doubled to 37.9 billion rupees from a year earlier, according to the median estimate of 34 analysts in a Bloomberg survey.
Foreigners bought $319 million of local stocks on Aug. 7, taking this year’s inflows to $12.1 billion, the most in Asia. The Sensex has surged 20 percent this year and trades at 15 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.
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