India’s Nifty Futures Decline Before Inflation, Reliance Results

Indian stocks dropped for a second day, led by industrials and healthcare companies, amid concern about a global economic slowdown and after data showed factory output growth missed estimates.

Mahindra & Mahindra Ltd., the country’s largest tractor maker, and Tata Motors Ltd. (TTMT) headed for two-month lows. Cipla Ltd., a drugmaker, was the second-worst performer on the S&P BSE Sensex. (SENSEX) Reliance Industries Ltd. (RIL), owner of the world’s largest refining complex, dropped ahead of its earnings.

The Sensex lost 0.4 percent to 26,190.5 at 11:59 a.m. in Mumbai, extending last week’s 1 percent retreat. Asian equities fell, extending a rout that wiped $ 1.54 trillion from global shares last week, amid concern that pledges to keep record-low interest rates won’t be enough to offset a global slowdown.

“There’s a reinforcement of the fact that there could be a slowdown and we are seeing some profit-booking in sectors where investors have made money,” Prakash Diwan, a director at Altamount Capital Management Pvt., said in an interview to Bloomberg TV India today. “We are seeing a continuation of the nervousness we saw last week.”

India’s industrial production in August grew 0.4 percent from a year earlier, official data showed after markets closed on Oct. 10. That trailed the 2.6 percent expansion estimated by 41 analysts in a Bloomberg survey. The government will announce inflation data for September today. The consumer-price index will rise 7.2 percent, compared with the 7.8 percent increase a month earlier, according to 32 analysts in a Bloomberg survey.

Mahindra & Mahindra lost 3.1 percent, the worst performer on the Sensex. Tata Motors fell for a second day.

Earnings Season

Reliance decreased 0.8 percent, halting a three-day, 3.7 percent advance. The company may say profit rose 2.4 percent to 56.2 billion rupees ($ 916.3 million) in the three months ended Sept. 30 from a year earlier, according to the median of 20 analyst estimates in a Bloomberg survey.

Infosys Ltd. (INFO), India’s second-largest software exporter, kicked off the corporate earnings season on Oct. 10, when it rallied to a record after posting a profit that beat analyst estimates. Net income for the 30 Sensex companies may increase 10 percent from a year earlier, according to a report by Kotak Securities Ltd. dated Oct. 3.

Forty-six percent of the gauge’s constituents posted earnings that beat or matched forecasts during the June quarter. That compares with 60 percent in the previous three months, data compiled by Bloomberg show.

Cipla lost 2.2 percent, while Sun Pharmaceutical Industries Ltd. (SUNP), India’s most valuable drugmaker, decreased for the first time in three days.

Wipro Ltd. (WPRO), India’s third-biggest software exporter, fell to a four-week low.

The Sensex has risen 23 percent this year and is the best performer among the world’s 10 largest equity markets. The measure trades at 15 times projected 12-month profits, compared with 10.6 times for the MSCI Emerging Markets Index.

Foreigners bought a net $ 2.4 million of local stocks on Oct. 9, taking this year’s inflows to $ 13.7 billion, the most among Asian markets tracked by Bloomberg. They withdrew a net $ 197.8 million last week amid a global rout in equities.

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

To contact the editors responsible for this story: Richard Frost at Ravil Shirodkar, Phani Varahabhotla

SGX Nifty

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