Indian (SENSEX) stock-index futures fell after the benchmark index closed at a record high yesterday and speculation increased that the U.S. Federal Reserve may soon reduce monetary stimulus.
SGX CNX Nifty Index futures for November delivery dropped 0.3 percent to 6,303 at 10:48 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index gained 0.8 percent to 6,299.15 yesterday, its highest level since Nov. 9, 2010. The S&P BSE Sensex increased 0.6 percent, extending this week’s gain to 2.3 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares slipped 0.1 percent.
U.S. data yesterday showing a jump in business activity and fewer jobless claims in the world’s biggest economy fueled concern that the Fed will begin paring its bond-purchase program as soon as December. Monetary stimulus has helped spur $ 2.6 billion of net foreign inflows into Indian shares this month through Oct. 30 and $ 16 billion of purchases in 2013, the most among 10 Asian markets tracked by Bloomberg after Japan.
“Profit booking is likely on rallies, though corrections must be seen as good opportunity for taking fresh longs,” Rakesh Goyal, a senior vice president at Bonanza Portfolio Ltd., wrote in an e-mail yesterday.
The Sensex advanced 9.2 percent last month, the most since January 2012. The gauge is up 9 percent this year, the best performance among the four-largest emerging markets. It trades at 14 times projected 12-month profits, in line with its five-year average. International investors bought a net $ 167 million of local shares Oct. 30, a 19th consecutive day of purchases, data from the regulator show.
Earnings Season
Sesa Sterlite Ltd. may move. India’s biggest zinc and aluminum producer posted a second-quarter profit of 23.9 billion rupees ($ 388.7 million). The median estimate of 17 analysts surveyed by Bloomberg was 16.4 billion rupees.
Quarterly earnings at 16 of 19 Sensex companies that have posted results surpassed analyst estimates, data compiled by Bloomberg show. About 47 percent of the 30 companies in the index missed forecasts in the previous quarter.
Multi Commodity Exchange of India Ltd. may be active. Jignesh Shah, who founded the nation’s biggest commodity trading platform in 2003, resigned from the board amid an investigation into the failure of a related spot bourse.
Indian Oil Corp. may move. The refiner cut gasoline prices by 1.15 rupees per liter and reduced diesel prices by 0.5 rupees, it said in an e-mailed statement.
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