Indian (SENSEX) stock-index futures gained as better-than-estimated corporate earnings countered a cut in the nation’s economic growth outlook by the World Bank. India’s financial markets reopen today after a holiday.
SGX CNX Nifty Index futures for October delivery rose 0.3 percent to 6,126 at 9:26 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index dropped 0.4 percent to 6,089.05 on Oct. 15, ending a five-day rally. The S&P BSE Sensex fell 0.3 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares added 0.7 percent. Markets in India were closed yesterday for a holiday.
Profits at all five Sensex companies that have reported earnings for the quarter ended Sept. 30 so far have beaten or matched estimates. About 47 percent of the 30 companies in the index missed projections in the previous quarter. The World Bank lowered its gross domestic product growth forecast for the fiscal year ending March 2014 to 4.7 percent from 6.1 percent in a report yesterday.
“Corporate results have been good so far and that will provide some comfort to investors,” Kishor Ostwal, managing director at CNI Research Ltd., said in an interview yesterday.
Asian stocks rose today, sending the benchmark MSCI Asia Pacific Index toward a five-month high, after the U.S. Senate voted to end the 16-day government shutdown and raise the debt ceiling as the deadline loomed today.
Shares of Tata Consultancy Ltd. (TCS), India’s largest software services exporter, may move after the company reported on Oct. 15 that quarterly profit jumped 34 percent from a year earlier to 47 billion rupees ($ 760 million), compared with the 45.3 billion-rupee median estimate of analysts in a Bloomberg survey.
Earnings Reports
Bajaj Auto Ltd. (BJAUT), India’s largest motorcycle maker by market capitalization, may be active after it reported yesterday net income rose 13 percent to 8.37 billion rupees, compared with 8.08 billion rupees forecast in a Bloomberg survey.
Axis Bank Ltd. (AXSB) is scheduled to release earnings today. Net income may rise to 12.5 billion rupees, from 11.2 billion rupees a year ago, according to the median of 42 analyst estimates in a Bloomberg survey.
Software exporter HCL Technologies Ltd. (HCLT)’s quarterly net income may jump 51 percent to 13.4 billion rupees, according to the median of 41 analyst predictions.
International investors bought a net $ 123.2 million of Indian stocks on Oct. 14, taking this year’s inflow to $ 14.3 billion, data from the regulator show.
The Sensex has risen 5.8 percent this year and is valued at 14.1 times projected 12-month profits, compared with the 10.8 times for the MSCI Emerging Markets index.
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