Indian stock-index futures gained after benchmark gauges rallied to all-time highs last week.
SGX CNX Nifty Index futures for June delivery added 0.6 percent to 7,638 at 10:32 a.m. in Singapore. The underlying CNX Nifty Index on the National Stock Exchange of India Ltd. rose 1.5 percent to a record 7,583.40 on June 6. The S&P BSE Sensex (SENSEX) increased 1.5 percent to 25,396.46. The Bank of New York Mellon India ADR Index of U.S.-traded shares climbed 1 percent.
The Sensex surged 4.9 percent last week as energy shares jumped on optimism Prime Minister Narendra Modi will agree to raise natural gas prices by the end of this month. Foreigners have bought a net $ 8.3 billion of local shares this year, the most among eight Asian markets tracked by Bloomberg, on optimism the new government will boost efforts to revive economic growth.
“There’s a lot of expectation from the new government,” Gopal Agrawal, chief investment officer at Mirae Asset Global Investments (India) Pvt., said by phone from Mumbai. “We are aligning our portfolio to sectors tied to the domestic economy and policy reforms such as oil and gas, logistics, public sector banks, capital goods and infrastructure.”
The Sensex has risen 29 percent since Sept. 13, when the opposition Bharatiya Janata Party named Modi its candidate for prime minister. Modi was sworn in on May 26 after winning India’s strongest electoral mandate in 30 years.
Overseas investors bought a net $ 29.6 million of Indian shares on June 4, according to data compiled by Bloomberg. The Sensex has climbed 20 percent this year and is valued at 15.6 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 10.9.
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