Indian stock-index futures dropped after benchmark gauges pared yesterday the biggest intraday advances since election results were announced on May 16.

SGX CNX Nifty Index futures for May delivery fell 0.2 percent to 7,360 at 10:38 a.m. in Singapore. The contract expires on May 29. The underlying CNX Nifty Index fell 0.1 percent to 7,359.05 yesterday after jumping as much as 1.9 percent. The S&P BSE Sensex (SENSEX) closed 0.1 percent higher at a record after surging 2 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares was little changed.

Narendra Modi was sworn in as prime minister yesterday, signaling he’ll reduce the number of cabinet ministers in what he described as an “unprecedented” overhaul of the government. Minister portfolios haven’t been announced yet. The Sensex has increased 25 percent since Sept. 13, when the Bharatiya Janata Party named Modi as its candidate.

“The markets have run up a lot in a very short time and some amount of profit-taking cannot be ruled out,” Arun Kejriwal, a director at Kejriwal Research & Investment Pvt., said by phone from Mumbai today. “Now that the government is formed, investors will take cues from what kind of policies it forms and how it implements them.”

Data showed yesterday that India’s current-account deficit narrowed to a fresh four-year low as higher tariffs reduced gold imports, giving Modi’s government more room to bolster Asia’s third-largest economy.

A shrinking shortfall will support India’s rupee, making imports cheaper, while Modi works toward boosting manufacturing and exports to fulfill his campaign promises of a stronger economy, more jobs and better roads.

Overseas investors bought a net $ 88 million of Indian shares on May 23, taking this year’s inflows to $ 7.7 billion, the most among eight Asian markets tracked by Bloomberg.

The Sensex has climbed 17 percent this year and is valued at 15.2 times projected 12-month earnings, near the most expensive level since April 2011. The MSCI Emerging Markets Index is trading at 10.8 times.

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To contact the editors responsible for this story: Michael Patterson at Matthew Oakley, Chan Tien Hin