India’s Nifty Futures Rise Before Inflation Report, Poll Result

Indian stock-index futures gained before monthly inflation data today and the results of national elections due tomorrow.

SGX CNX Nifty Index futures for May delivery rose 0.3 percent to 7,153.5 at 9:51 a.m. in Singapore. The underlying CNX Nifty Index was unchanged at a record 7,108.75 yesterday. The S&P BSE Sensex (SENSEX) fell 0.2 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares lost 0.3 percent.

India’s wholesale inflation accelerated 5.7 percent in April, the same pace as in March, according to the average estimate of 39 analysts in a Bloomberg survey. The Sensex has surged as polls suggest victory for the opposition Bharatiya Janata Party led by Narendra Modi, who investors are betting will revive an economy growing at near a decade-low pace.

“The markets seem to be waiting for May 16 to confirm exit-poll results before making a further move,” Kiran Kumar Kavikondala, chief executive officer at WealthRays Securities Ltd., wrote in an e-mail yesterday.

The BJP and its partners are projected to win 279 of the 543 seats in the lower house of India’s parliament, according to an exit poll released yesterday by NDTV television channel and Hansa Research. The party needs 272 for a majority.

The Sensex index has risen 21 percent since Sept. 13, when the BJP named Modi as its candidate for prime minister, while the rupee has gained 6.4 percent. The rally may extend if the BJP and its allies secure more than 266 seats, according to a Bloomberg survey of 19 brokers and investment advisory firms published May 9.

Earnings Reports

Shares of Tata Steel Ltd. (TATA), India’s biggest producer, may be active. The company reported net income of 10.4 billion rupees ($ 175 million) for the quarter ended March 31 after markets closed yesterday, compared with the median 9.13 billion-rupee estimate of 23 analysts in a Bloomberg survey.

Aurobindo Pharma Ltd. (ARBP), India’s seventh-largest drugmaker by market capitalization, may move. The company will be added to the MSCI India Index at the close of trading on May 30, the index provider said today. The share price has more than tripled in the past 12 months, while profit surged more than fourfold from a year earlier in the quarter ended Dec. 31.

NTPC Ltd. (NTPC), India’s biggest power producer, may say profit dropped to 27.49 billion rupees in the quarter ended March 31, from 43.82 billion rupees a year earlier, according to the median estimate of 25 analysts surveyed by Bloomberg.

Foreign Flows

Motorcycle maker Bajaj Auto Ltd. (BJAUT) may report net income of 8.04 billion rupees, compared with 7.66 billion rupees a year earlier, according to 37 analysts in a Bloomberg survey.

Eleven of the 14 Sensex companies that have reported earnings so far have beaten or matched estimates, according to data compiled by Bloomberg.

Overseas investors bought a net $ 203 million of Indian shares on May 12, taking this year’s inflows to $ 5.97 billion, the highest after Taiwan among eight Asian markets tracked by Bloomberg. Inflows into equities may continue on expectations of a stable government, Goldman Sachs Group Inc. said in a report on May 13.

The Sensex has climbed 12 percent this year and is valued at 14.8 times projected 12-month profits, according to data compiled by Bloomberg. The MSCI Emerging Markets Index is trading at 10.7 times.

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at

To contact the editors responsible for this story: Michael Patterson at Matthew Oakley, Chan Tien Hin

SGX Nifty

You may also like...

Discussion on India’s Nifty Futures Rise Before Inflation Report, Poll Result