India Nifty Futures Gain After China Rate Cut Spurs Asian Stocks

Indian stock-index futures advanced after benchmark gauges climbed to record highs last week and China’s unexpected cut in interest rates spurred a rally in Asian shares.

SGX CNX Nifty Index futures for November delivery rose 0.6 percent to 8,540.5 at 9:51 a.m. in Singapore. The underlying CNX Nifty Index (NIFTY) on the National Stock Exchange of India Ltd. added 0.9 percent to a record 8,477.35 on Nov. 21. The S&P BSE Sensex (SENSEX) rallied 1 percent to 28,334.63, an all-time high. The Bank of New York Mellon India ADR Index of U.S.-traded shares gained 2.1 percent to 1,548.13.

The Sensex posted its fifth weekly advance amid speculation the government will accelerate reforms to boost economic growth. The MSCI Asia Pacific excluding Japan Index gained 0.6 percent today after the People’s Bank of China unexpectedly cut interest rates, joining Europe and Japan in bolstering economic stimulus amid a global slowdown.

China’s rate cut “should be positive for broader markets as the PBOC is responding to the reality of the underlying economy,” Jonathan Bell, the London-based head of emerging markets equities at Nomura Asset Management, which oversees $ 307 billion globally, said in an e-mail on Nov. 21.

Indian Finance Minister Arun Jaitley said Nov. 17 that a rate cut in India would give a “good fillip” to the economy, according to a report by the Press Trust of India. The next policy review is on Dec. 2.

Holding Rate

Reserve Bank of India governor Raghuram Rajan has held the benchmark repurchase rate at 8 percent after increasing it three times from September 2013 through January to rein in living costs in Asia’s third-largest economy.

A parliament session begins today amid expectation Prime Minister Narendra Modi’s government will pass key bills to cut red tape and open the economy to further foreign investment.

Coal India Ltd. (COAL), the world’s biggest miner of the fuel by volume, may be active. Three of the four unions planning a strike today called off industrial action after talks with the coal ministry officials, S. Q. Zama of Indian National Trade Union Congress said by phone on Nov. 22.

The unions had planned a day-long strike today to protest a government plan to sell shares in Coal India and a provision that could allow private companies to mine and sell the fuel.

Global investors sold a net $ 66.4 million of local shares on Nov. 20, paring this year’s inflow to $ 15.4 billion, still the most among eight Asian markets tracked by Bloomberg. The Sensex has risen 34 percent this year, the best performer among the world’s 10 biggest markets, the data show.

The Sensex is valued at 15.8 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.3.

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

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

SGX Nifty

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