Indian stock-index futures swung between gains and losses after the benchmark index declined to a one-week low yesterday.

SGX CNX Nifty Index futures for October delivery added 0.1 percent to 6,197.5 at 10:08 a.m. in Singapore after losing as much as 0.2 percent. The underlying CNX Nifty (NIFTY) Index fell 0.4 percent to 6,178.35 yesterday. The S&P BSE Sensex declined 0.5 percent. The Bank of New York Mellon India ADR Index of U.S.- traded shares dropped 1.3 percent.

The Sensex fell for two straight days through yesterday, after climbing to the highest level in almost three years on Oct. 21 as earnings at companies in the index beat analysts’ forecasts, and on speculation the U.S. Federal Reserve will maintain economic stimulus. International investors were net buyers of Indian stocks for a 13th day on Oct. 22, the longest series of purchases since May.

“We are in a liquidity-driven market and we can see a further rally and maybe a new high,” Mehraboon Irani, principal and head of private client group at Nirmal Bang Securities Ltd., said in an interview on Bloomberg TV India yesterday. “In the past three months, we have moved from acute pessimism to complete complacency.”

Global investors bought a net $ 129.5 million of stocks on Oct. 22, data from the regulator showed yesterday. That took this year’s inflows to a net $ 15.2 billion, the second-highest after Japan among 10 Asian markets tracked by Bloomberg.

Capital Inflows

Overseas investors have bought a net $ 1.79 billion of local shares this month, adding to inflows of $ 2 billion in September, data from the market regulator show.

The Sensex has risen 6.9 percent this year and is valued at 14 times estimated 12-month profits, compared with the MSCI Emerging Markets Index’s 10.7 times.

Profits at all nine of the 30 Sensex companies that have reported earnings so far this season have beaten or matched estimates, compared with 47 percent that missed forecasts in the June quarter.

Shares of government-run lenders including State Bank of India may move after the Finance Ministry said yesterday that that will receive a 140 billion-rupee ($ 2.3 billion) capital infusion to guard against soured loans in a slowing economy.

The recapitalization of state-controlled banks will enable them to raise money through share sales, Rajiv Takru, the Finance Ministry’s banking secretary, said in New Delhi. State Bank of India (SBIN) will receive 20 billion rupees, while IDBI Bank Ltd. (IDBI) and Central Bank of India will get 18 billion rupees each, he said. Bad debt as a percentage of Indian (SENSEX) bank lending rose to a six-year high in June, central bank data show.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net

To contact the editor responsible for this story: Michael Patterson at mpatterson10@bloomberg.net