Indian stock-index futures swung between gains and losses after benchmark gauges advanced for an eighth day yesterday to all-time highs.
SGX CNX Nifty Index futures for July delivery lost 0.1 percent to 7,825 at 9:51 a.m. in Singapore. The underlying CNX Nifty Index added 0.5 percent to 7,830.60 yesterday. The S&P BSE Sensex rose 0.5 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares declined 0.1 percent.
The Sensex surged 24 percent this year as international investors have poured more than $12 billion into Indian stocks amid expectations a new government under Prime Minister Narendra Modi would spur growth in Asia’s third-largest economy.
“The market is being driven by foreign inflows,” Kishor Ostwal, managing director at CNI Research Ltd., said today. “Given that stocks have rallied for eight days, some profit-booking is not ruled out. We remain positive over the next 12 months but in the short term there will be some volatility.”
Indian stocks won’t rise much more in the near term, Mark Mobius, executive chairman of Templeton Emerging Markets, said in an interview with Bloomberg Television yesterday. The country’s equity market still has long-term upside, he said.
Shares of Wipro Ltd., India’s third-biggest software exporter, may be active. The company said after market hours yesterday that profit rose 30 percent from a year earlier to 21 billion rupees ($349 million) in the June quarter, compared with the 21.3 billion-rupee median estimate of analysts.
Gail India Ltd., India’s largest natural gas distributor, may report today that quarterly net income rose 25 percent to 10.1 billion rupees, according to the median estimate of 29 analysts in a Bloomberg survey.
Punjab National Bank may say first-quarter profit fell 14 percent to 11 billion rupees, according to the median estimate of 33 analysts.
Five of eight Sensex companies that have announced results so far for the June quarter have beaten or matched forecasts.
Overseas investors bought a net $139.5 million of Indian shares on July 23, according to data compiled by Bloomberg. That extended this year’s inflow to $12.1 billion, the most among eight Asian markets tracked by Bloomberg.
The Sensex is valued at 15.6 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s multiple of 11.2.