Indian (SENSEX) stock-index futures dropped, signaling equities may fall for the first time in three days as stronger-than-forecast U.S. jobs data fueled concern the Federal Reserve will ease its stimulus program.

SGX CNX Nifty Index futures for July delivery fell 0.8 percent to 5,821.5 at 10:29 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index added 0.5 percent to 5,867.90 on July 5. The S&P BSE Sensex gained 0.4 percent to 19,495.82. The Bank of New York Mellon India ADR Index of U.S.-traded shares climbed 1.1 percent to 960.95.

The Sensex rose 1.7 percent the past two days as European Central Bank President Mario Draghi pledged to keep interest rates low. The gauge has dropped 2.8 percent since May 22 when Fed Chairman Ben S. Bernanke said the central bank could consider easing its bond-buying program if the U.S. jobs market improves. Data on July 5 showed U.S. payrolls rose by 195,000 last month, exceeding the 165,000 median forecast of economists in a Bloomberg survey.

“The markets look vulnerable to foreign outflows given the concerns on Fed tapering,” Kishor Ostwal, managing director at CNI Research Ltd., said by phone today. “With no major positive domestic news to counter that, it looks like a gap down at the opening.”

The MSCI Emerging Markets Index sank 1 percent today, taking its slump since May 22 to 13 percent amid concern the end of the Fed’s so-called quantitative easing will spur investors to pull funds out of developing nations’ assets.

Fund Outflows

Foreign investors withdrew a net $ 1.76 billion from Indian stocks last month, the most since August 2011, data compiled by Bloomberg show. Overseas funds bought a net $ 70 million of Indian stocks on July 4, extending this year’s net inflow to $ 13.5 billion, the data show.

The Sensex trades at 13 times projected 12-month earnings. While that’s down from a 3 1/2-month high of 13.7 reached on May 17, it’s still at a 37 percent premium to the MSCI Emerging Markets Index’s multiple of 9.5.

Reliance Communications Ltd. (RCOM), the mobile phone operator controlled by billionaire Anil Ambani, may move after saying it plans to spin off its real estate business. DLF Ltd. (DLFU) may be active after Press Trust of India reported the company sold a wind-turbine project for 3.25 billion rupees ($ 54 million).

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

Enlarge image India’s Nifty Index Futures Signal Stocks to Snap Two-Day Rally

India’s Nifty Index Futures Signal Stocks to Snap Two-Day Rally

India’s Nifty Index Futures Signal Stocks to Snap Two-Day Rally

Adeel Halim/Bloomberg

An electronic ticker board is reflected in a man’s glasses as he analyses the latest stock prices at the Bombay Stock Exchange (BSE) in Mumbai. The Sensex trades at 13 times projected 12-month earnings.

An electronic ticker board is reflected in a man’s glasses as he analyses the latest stock prices at the Bombay Stock Exchange (BSE) in Mumbai. The Sensex trades at 13 times projected 12-month earnings. Photographer: Adeel Halim/Bloomberg