Indian (SENSEX) stock-index futures gained, signaling benchmark indexes may climb for a second day.

SGX CNX Nifty Index futures for July delivery rose 0.3 percent to 5,990 at 9:52 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index advanced 0.3 percent to 5,973.30 yesterday. The S&P BSE Sensex added 0.5 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares fell 0.4 percent.

Indian stocks rebounded yesterday from the biggest drop in two weeks after the government approved plans to ease foreign investment rules to boost growth and as Hindustan Unilever Ltd. surged to a record amid a rally in consumer shares.

“Portfolio investors are shifting to consumer stocks from high-risk sectors like banks as economic growth prospects weaken,” Suniil Pachisia, vice president at Pratibhuti Viniyog Ltd., said in a phone interview.

Policy changes approved on July 16 permit foreign companies to own all of a phone carrier and invest more than 26 percent in defense production on a case-by-case basis. The government is wooing funds needed to finance a record current-account deficit as the rupee sank to a record this month, and after the $ 1.9 trillion economy expanded at the slowest pace in a decade in the fiscal year ended March 31.

Earnings Reports

Tata Consultancy Services Ltd. (TCS), India’s largest software services company by market value, may report today first-quarter net income of 37.45 billion rupees ($ 631 million), according to the median of 38 analyst estimates compiled by Bloomberg. That compares with 32.8 billion rupees in the same quarter last year.

Axis Bank Ltd. (AXSB) may report profit of 13.9 billion rupees, according to the median estimate of 40 analysts in a Bloomberg survey. The stock is rated buy by 51 out of 71 analysts surveyed by Bloomberg, with an average price target of 1,599.64 rupees, a 34 percent gain on yesterday’s closing price.

Kotak Mahindra Bank Ltd. (KMB) may announce first-quarter net income of 4.24 billion rupees, seven analysts forecast. Six out of 25 analysts rate the stock a buy, with a price target of 711.56 rupees, compared with 711.40 rupees at yesterday’s close.

Global investors sold $ 52.2 million of local shares on July 16, paring this year’s inflows to $ 12.4 billion, data compiled by Bloomberg show. Overseas funds have sold a net $ 981 million of Indian stocks this month, the most among 10 Asian markets tracked by Bloomberg, extending June’s $ 1.8 billion sell-off.

The Sensex has gained 2.7 percent this year and trades at 13.5 times projected 12-month earnings, the most expensive since May 30. The MSCI Emerging Markets Index is valued at 10 times. The Indian measure’s 30-day volatility index, a gauge of price swings, rose to 20.1 yesterday, the highest level since April 9, 2012, according to data compiled by Bloomberg.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at

To contact the editor responsible for this story: Michael Patterson at