India’s Nifty Futures Rise as Stocks Poised for Weekly Advance

Indian stock-index futures gained as the benchmark equity gauges headed for their first weekly advance in four weeks.

SGX CNX Nifty Index futures for July delivery rose 0.2 percent to 7,761.5 at 10:52 a.m. in Singapore. The underlying CNX Nifty Index on the National Stock Exchange of India Ltd. fell 0.1 percent to 7,714.80 yesterday. The S&P BSE Sensex declined 0.1 percent to 25,823.75. The Bank of New York Mellon India ADR Index of U.S.-traded shares added 0.6 percent.

The Sensex has climbed 2.9 percent this week and is on course to halt a three-week losing streak before the government releases the federal budget on July 10. Overseas investors sold a net $688 million of Indian shares on July 2, the largest daily outflow in almost a year, paring 2014’s inflows to $9.6 billion, data compiled by Bloomberg show.

“Investors would like to wait for the budget announcement before taking huge fresh positions,” Kishor Ostwal, managing director at CNI Research Ltd., said in a phone interview today. “Stocks will trade in a narrow range in the absence of triggers.”

Indian equities have received the second-largest foreign fund inflows in Asia this year amid expectations Prime Minister Narendra Modi’s government will help cool Asia’s fastest consumer inflation and boost economic growth.

The Sensex has advanced 22 percent this year, the best performer among Asian indexes, and trades at 15.8 times projected 12-month profits. That’s the most expensive valuation for the gauge in more than three years and compares with the MSCI Emerging Markets Index’s multiple of 11.1.

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