Indian (SENSEX) stock-index futures gained as more corporate earnings beat analysts’ estimates.
SGX CNX Nifty Index futures for October delivery rose 0.2 percent to 6,240 at 9:49 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index fell less than 0.1 percent to 6,202.80 yesterday. The S&P BSE Sensex declined 0.1 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares lost less than 0.1 percent. The rupee weakened for a third day on speculation resurgent inflation will force the Reserve Bank of India to raise borrowing costs at its policy meeting on Oct. 29.
Wipro Ltd. (WPRO), India’s third-largest software services provider, reported after the market closed yesterday that net income for the three months ended Sept. 30 rose 20 percent to 19.3 billion rupees ($ 313 million), compared with the median estimate of 18.4 billion rupees in a Bloomberg survey of analysts. All eight Sensex companies that have released quarterly earnings so far have beaten or matched forecasts.
“The results season is as good as we’ve seen in the recent past,” Ambareesh Baliga, managing partner of global wealth management at Mumbai-based Edelweiss Financial Services Ltd., said in an interview on Bloomberg TV India yesterday. “However, for markets to create new highs and sustain them will be very difficult from here.”
Earnings Reports
Asian stocks rose today, with the benchmark MSCI Asia Pacific Index trading near a five-year high, amid speculation the Federal Reserve will delay cutting economic stimulus until next year after U.S. payrolls rose less than forecast.
Hero MotoCorp Ltd. (HMCL), the biggest motorcycle maker, may say today its second-quarter profit increased to 4.53 billion rupees, according the median estimate of 43 analysts in a Bloomberg survey.
Cement makers ACC Ltd. (ACC) and Ambuja Cements Ltd. (ACEM) also announce earnings today. ACC may report net income of 1.69 billion rupees, according to a Bloomberg survey of 21 analysts, while profit at Ambuja may be 2.19 billion rupees, 33 analysts forecast.
International investors bought a net $ 163 million of stocks on Oct. 21, a 12th straight day of purchases, data from the market regulator show. That brought this year’s inflows to a net $ 15.1 billion, the second-highest after Japan among 10 Asian markets tracked by Bloomberg.
Foreign funds have bought a net $ 1.66 billion of local shares this month, adding to inflows of $ 2 billion in September.
The Sensex has risen 7.4 percent this year and is valued at 14.1 times estimated 12-month profits, compared with the MSCI Emerging Markets Index’s 10.8 times.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net
To contact the editor responsible for this story: Michael Patterson at mpatterson10@bloomberg.net