India’s Nifty Index Futures Drop After Sensex Jumps to Record

Oct. 31 (Bloomberg) -- Indian stock-index futures dropped after the benchmark S&P BSE Sensex index rose to a record closing high yesterday. Derivatives contracts expire today.

SGX CNX Nifty Index futures for October delivery fell 0.3 percent to 6,234.5 at 10:22 a.m. in Singapore. The most-active November contract lost 0.1 percent to 6,282. The underlying CNX Nifty Index gained 0.5 percent to 6,251.70 yesterday, the highest level since Nov. 10, 2010. The Sensex added 0.5 percent. The gauge has gained 8.5 percent this month, poised for the largest advance since January 2012. The Bank of New York Mellon India ADR Index of U.S.-traded shares declined 0.4 percent.

The Sensex advanced to an all-time high yesterday as corporate earnings beat forecasts and amid speculation continued U.S. Federal Reserve stimulus will spur capital inflows. Asian stocks fell today, trimming the best two-month rally for the MSCI Asia Pacific Index since the start of 2012, after a Fed statement yesterday fueled bets it may start paring stimulus sooner than previously forecast, even as it maintained the pace of monthly bond-buying.

“Some investors would be tempted to book profits given the markets have rallied to a record,” Kishor Ostwal, managing director at CNI Research Ltd., said in a phone interview today. “We expect a volatile trading session as monthly futures expire.”

International investors have bought a net $4.5 billion of Indian stocks in the past two months. Quarterly profits at 14 out of 17 Sensex companies that have reported results so far surpassed analyst estimates.

Earnings Reports

Drugmaker Dr. Reddy’s Laboratories Ltd. may report today its second-quarter group net income grew 13 percent to 4.58 billion rupees ($74.8 million), according to the median estimate of 35 analysts in a Bloomberg survey.

Global funds bought a net $197 million of local shares on Oct. 29, an 18th day of consecutive purchases, data from the regulator showed yesterday. That extended this year’s inflow to $15.9 billion, the second-highest after Japan among 10 Asian markets tracked by Bloomberg.

The gauge is the best performer among the four largest emerging markets this year and trades at 14.2 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s 10.5 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