Indian (SENSEX) stock-index futures gained after the rupee strengthened to a one-week high, and before futures contracts expire today.
SGX CNX Nifty Index futures for November delivery rose 0.6 percent to 6,096.5 at 9:53 a.m. in Singapore. The most-active December contract added 0.5 percent to 6,142. The underlying CNX Nifty (NIFTY) Index and benchmark S&P BSE Sensex both lost less than 0.1 percent yesterday. The Sensex has declined 3.5 percent in November, poised for the first monthly loss since August. The Bank of New York Mellon India ADR Index of U.S.-traded shares rose 0.2 percent.
Indian derivatives contracts expire on the last Thursday of every month. The rupee advanced yesterday after international investors pumped money into the nation’s shares. Foreign funds have bought a net $ 992 million of stocks this month, heading for a third straight monthly inflow. The MSCI Asia Pacific Index gained today after U.S. employment and consumer confidence reports boosted optimism in the world’s largest economy.
“The futures and options expiry and global cues are what will dictate proceedings,” Amar Ambani, head of research at IIFL Ltd., wrote in an e-mail yesterday.
A stronger rupee helps to reduce import costs in a country that buys about 80 percent of its oil from overseas. Wholesale prices (INFINFY) accelerated 7 percent from a year earlier in October, the most in eight months. Consumer prices rose 10.09 percent, the fastest in 17 Asia-Pacific economies tracked by Bloomberg.
Foreign Flows
Foreigners have purchased $ 17.3 billion of Indian stocks this year, the highest inflow after Japan among 10 Asian markets tracked by Bloomberg.
Still, data due tomorrow may show India’s economy grew 4.6 percent from a year ago in the quarter ended Sept. 30, compared with 4.4 percent in the previous three months, according to a Bloomberg survey of 40 analysts. That would cap the longest quarterly stretch of sub-5 percent growth since 2005.
The Sensex has risen 5.1 percent this year and is valued at 13.4 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s 10.5 times.
Shares of Indian sugar producers including Shree Renuka Sugars Ltd. (SHRS) and Bajaj Hindusthan Ltd. (BJH) may be active. A dispute that has delayed cane processing in India, the world’s second-biggest producer, is near an end and the nation will meet its production forecast, an industry group said yesterday.
Bajaj Hindusthan has slumped 43 percent this year and Shree Renuka has tumbled 35 percent.
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