Indian (SENSEX) stock-index futures fell after the benchmark gauge capped its biggest weekly loss in three months.
SGX CNX Nifty Index futures for November delivery slid 0.8 percent to 6,131.5 at 10:01 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index on the National Stock Exchange of India Ltd. lost 0.8 percent to 6,140.75 on Nov. 8. The S&P BSE Sensex sank 0.8 percent to 20,666.15, its fourth day of losses. The Bank of New York Mellon India ADR Index of U.S.-traded shares rose less than 0.1 percent to 1,097.15.
The Sensex retreated 2.7 percent last week as the rupee completed the largest weekly loss in more than two months on concern the U.S. will pare stimulus earlier than anticipated. American payrolls added almost twice as many workers as projected in October, data showed last week.
“We expect the recapitulation to continue today as there are fresh fears emerging of a sooner-than-expected tapering, given the strong data from the U.S.,” Surya Narayan Nayak, an analyst at Networth Stock Broking Ltd., said by phone from Mumbai today. “The rupee has started weakening again and that will slow the pace of foreign inflows.”
The Sensex trades at 13.7 times projected 12-month profits, compared with 10.5 times for the MSCI Emerging Markets Index, according to data compiled by Bloomberg.
Tata Motors Ltd. (TTMT), India’s biggest automaker, may move. Second-quarter net income gained 71 percent to 35.4 billion rupees ($ 564 million), the Mumbai-based company said after the market closed on Nov. 8. That exceeded the 28 billion-rupee median of 39 analysts estimates compiled by Bloomberg.
The Sensex has risen 6.4 percent this year, the biggest gain among the four largest emerging markets, as more companies reported profits that exceeded estimates and as monetary stimulus helped spur $ 2.9 billion of net foreign flows into shares last month.
Global investors bought a net $ 77.3 million of stocks on Nov. 7, a 24th day of net purchases, data from the regulator show.
To contact the reporters on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net; Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editor responsible for this story: Michael Patterson at mpatterson10@bloomberg.net
Bombay Stock Exchange
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The Bombay Stock Exchange (BSE) building is illuminated during a special holiday trading session marking the occasion of Diwali in Mumbai.
The Bombay Stock Exchange (BSE) building is illuminated during a special holiday trading session marking the occasion of Diwali in Mumbai. Photographer: Dhiraj Singh/Bloomberg