India’s Nifty Futures Swing After Gauge Drops to Two-Week Low

Indian (SENSEX) stock-index futures swung between gains and losses after the CNX Nifty (NIFTY) Index dropped to a two-week low.

SGX CNX Nifty Index futures for August delivery fell less than 0.1 percent to 5,914 at 10:33 a.m. in Singapore after rising 0.5 percent earlier today. The Nifty lost 0.4 percent to 5,886.20 on July 26, its lowest level since July 10. The S&P BSE Sensex sank 0.3 percent to 19,748.19. The gauge fell 2 percent last week, ending four weeks of gains. The Bank of New York Mellon India ADR Index of U.S.-traded shares fell 1.2 percent to 1,022.48.

The Reserve Bank of India is due to release an economic report today before an interest-rate decision tomorrow. The central bank will probably keep its repurchase rate unchanged at 7.25 percent, all 28 economists in a Bloomberg News survey said. The monetary authority held the rate steady last month, following three cuts earlier this year.

“All eyes are on the RBI policy,” said Kishor Ostwal, managing director at CNI Research Ltd. “While no change in rates are expected, the tone and tenor of the policy will be keenly watched.”

Prime Minister Manmohan Singh meets with industry leaders today to discuss the current-account deficit, rupee and how to revive industrial growth. India’s economy grew 5 percent in the year ended March 31, the slowest pace in a decade.

The Sensex slumped last week after the RBI tightened banks’ access to cash on July 23 to steady the nation’s currency. The gauge has gained 1.8 percent this month, poised for its biggest advance since April. It trades at 13.9 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s 10 times.

Wipro Profit

Wipro Ltd. (WPRO), India’s third-largest software exporter, may move after reporting a 2.5 percent increase in first-quarter profit. While net income of 16.2 billion rupees ($ 275 million) matched the median of estimates in a survey of analysts by Bloomberg, the company’s sales of 97.3 billion rupees missed the survey’s 99.3 billion-rupee median.

Four of the 13 Sensex members that have announced earnings so far for the June quarter missed analyst estimates. UltraTech Cement Ltd. and Jaiprakash Associates Ltd., which aren’t Sensex members, are among companies reporting earnings today.

Maruti Suzuki India Ltd. (MSIL), the nation’s biggest carmaker by volume, may be active after Chairman R.C. Bhargava told reporters on July 27 the company plans to introduce a light commercial vehicle.

Bank shares may move as options prices climbed to the highest level in more than two years. Implied volatility on the 12-stock CNX Bank Index was 75 percent higher than the India VIX index on July 24, the biggest gap since December 2010, according to data compiled by Bloomberg based on one-month options with an exercise price closest to the index level.

International investors sold a net $ 40 million of Indian shares on July 25, paring this year’s net purchases to $ 12.3 billion, data compiled by Bloomberg show. They have sold $ 1.1 billion of stocks this month, the most among 10 Asian markets tracked by Bloomberg.

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net

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

Enlarge image India’s Nifty Futures Signal Index to Rise From Two-Week Low

India’s Nifty Futures Signal Index to Rise From Two-Week Low

India’s Nifty Futures Signal Index to Rise From Two-Week Low

Adeel Halim/Bloomberg

Security officers stand guard near a bronze bull statue at the entrance to the Bombay Stock Exchange (BSE) in Mumbai.

Security officers stand guard near a bronze bull statue at the entrance to the Bombay Stock Exchange (BSE) in Mumbai. Photographer: Adeel Halim/Bloomberg

SGX Nifty

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