Indian (SENSEX) stock-index futures gained, signaling benchmark indexes may snap the longest losing streak in four months.
SGX CNX Nifty Index futures for August delivery rose 0.6 percent to 5,797 at 9:41 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index fell 0.3 percent to 5,727.85 yesterday. The S&P BSE Sensex declined 0.2 percent, its seventh day of losses. The Bank of New York Mellon India ADR Index of U.S.-traded shares rose 0.9 percent.
The MSCI Asia Pacific Index climbed today after reports showed that factory output from the U.S. to China and Europe expanded in July, while U.S. jobless claims fell to a five-year low. The data came after the Federal Reserve retained its $ 85 billion-a-month bond-buying program and as European Central Bank President Mario Draghi said interest rates will probably remain low for an extended period.
“Some stocks have been hammered and selling has been overdone,” Jitendra Panda, head of broking at Capital First Ltd. (CAFL), said by phone from Mumbai.
India eased requirements yesterday for foreign retailers to invest in local supermarkets to lure global chains such as Wal-Mart Stores Inc. and Tesco Plc to open stores in Asia’s third-biggest economy. The cabinet also approved proposals to amend foreign direct investment rules for a range of businesses including commodity exchanges, he said.
The government is loosening rules on overseas investment to help stem a ballooning current-account deficit and support a currency that sank to a record low last month. The rupee fell yesterday on concern outflows from stocks may intensify after Goldman Sachs Group Inc. recommended cutting holdings amid the slowest economic growth in a decade.
Indian stocks declined yesterday, heading for a second straight weekly decline, as a trading halt at the nation’s biggest exchange for spot commodities spurred concern that some investors may sell equities holdings to meet margin calls.
Financial Technologies (India) Ltd. (FTECH) sank 65 percent yesterday after unit National Spot Exchange Ltd. suspended trading in some contracts, merged the delivery and settlement of all others and deferred them for a period of 15 days.
The Sensex ended a four-week rally last week after the Reserve Bank of India tightened banks’ access to cash on July 23 to stabilize a weakening rupee. The central bank maintained the benchmark repurchase rate at 7.25 percent this week, and cut its economic growth forecast for the year to March 2014 to 5.5 percent from 5.7 percent.
Siemens Ltd. (SIEM) may announce today profit of 887 million rupees ($ 14.7 million) for the quarter ended June 30, according to 16 analysts in a Bloomberg survey.
Ten of the 15 Sensex members that have posted earnings so far for the June quarter beat analyst estimates. About 27 percent of companies in the measure missed forecasts for the three months ended March, and 43 percent in the quarter through December, data compiled by Bloomberg show.
The Sensex has lost 0.6 percent this year and trades at 13.6 times projected 12-month earnings, down from a 17-month peak of 14.3 times on July 23. The MSCI Emerging Markets Index trades at 10.1 times.
Global funds bought a net $ 29 million of local shares on July 31, taking this year’s net purchases to $ 12.4 billion, data compiled by Bloomberg show. They have sold $ 986 million of Indian stocks in July, the most among 10 Asian markets tracked by Bloomberg, extending June’s $ 1.8 billion sell-off.
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