Indian stock-index futures fell after benchmark indexes jumped to records yesterday.
SGX CNX Nifty Index futures for March delivery lost 0.1 percent to 6,603 at 10:06 a.m. in Singapore. The underlying CNX Nifty Index advanced 1.4 percent to an all-time high of 6,583.50 yesterday. The S&P BSE Sensex (SENSEX) also climbed 1.4 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares added 0.3 percent.
The MSCI Asia Pacific Index dropped today after data showed a slowdown in U.S. manufacturing. The Nifty and Sensex indexes rose yesterday after the government beat its $ 3.1 billion asset-sale target for the current fiscal year and international investors added to their holdings of local shares.
“The markets have run a bit ahead of themselves,” Arun Kejriwal, a director with Kejriwal Research & Investment Pvt., said by phone from Mumbai today.
The government is set to raise 214 billion rupees ($ 3.5 billion) selling shares in state companies in the year ending March 31, above its 190-billion-rupee target, as it aims to narrow a shortfall in its finances and avoid a credit-rating downgrade to junk.
International investors bought a net $ 701.2 million of Indian stocks over March 21 and March 22, according to data compiled by Bloomberg. That extended this year’s inflow to $ 2.58 billion, the most among eight Asian markets tracked by Bloomberg.
Global investors are snapping up shares as the government predicts the shortfall in the current account will shrink by almost 50 percent and the gap in public finance is set for a six-year low.
The Sensex is the best performer this year among the four largest emerging markets of China, Russia and Brazil, as improving public finances and cooling inflation boost investor confidence. The gauge’s 4.2 percent gain since Jan. 1 has also come amid speculation national polls starting next month will deliver a government with the mandate to revive economic growth from a decade low.
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