Indian stock-index futures advanced after the nation’s benchmark gauge ended a three-day loss and companies from Reliance Industries Ltd. to Wipro Ltd. reported higher profit.
SGX CNX Nifty Index futures for April delivery rose 0.1 percent to 6,815.5 at 10 a.m. in Singapore. The underlying CNX Nifty Index on the National Stock Exchange of India Ltd. surged 1.6 percent to 6,779.40 on April 17. The S&P BSE Sensex (SENSEX) rallied 1.6 percent to 22,628.84. The Bank of New York Mellon India ADR Index of U.S.-traded shares rose 1 percent to 1,229.18. The markets were closed on April 18 for a holiday.
The Sensex rebounded from the biggest three-day slide since February on April 17, erasing a weekly loss. The gauge rose to a record on April 10 on bets a victory by the opposition Bharatiya Janata Party will produce a government with a mandate to spur economic growth. Four out of the 30 Sensex companies that have reported earnings for the March quarter have either beaten or matched estimates.
“The market is showing optimism ahead of election results,” Rakesh Goyal, senior vice president at Bonanza Portfolio Ltd., wrote by e-mail on April 17. “Fourth quarter results and global cues shall dictate market trend.”
Several opinion polls have projected the coalition led by the BJP will win the general election for the 543-seat lower house of India’s parliament. For the first time, a poll survey released on April 14 found that the coalition may win an outright majority.
India’s elections, the world’s biggest-ever exercise in democracy, began on April 7 and will end on May 12 after nine phases of voting. Counting will take place on May 16.
Reliance Industries, operator of the world’s biggest oil refinery complex, reported on April 18 its highest quarterly profit in more than two years, while Wipro’s fourth-quarter net income topped estimates.
Overseas investors have bought a net $ 4.7 billion of local shares this year, the most in Asia, data compiled by Bloomberg show. The Sensex has risen 6.9 percent so far in 2014 and trades at 14.3 times projected 12-month profits, in line with the average multiple over the past five years. The MSCI Emerging Markets Index has gained 0.9 percent in 2014 and is valued at 10.5 times.
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