Indian stock-index futures gained after the benchmark equity gauge posted its longest stretch of weekly losses in almost three months.
SGX CNX Nifty Index futures for June delivery rose 0.3 percent to 7,551 at 10:30 a.m. in Singapore. The underlying CNX Nifty Index on the National Stock Exchange of India Ltd. fell 0.4 percent to 7,511.45 on June 20. The S&P BSE Sensex (SENSEX) declined 0.4 percent to 25,105.51 for a third day of losses. The Bank of New York Mellon India ADR Index of U.S.-traded shares dropped 0.7 percent to 1,313.90.
The Sensex capped its second weekly loss on June 20 amid concern rising oil prices and below-normal rainfall will stoke inflation, reducing scope for monetary easing. The index has risen 19 percent this year amid expectations Prime Minister Narendra Modi’s government will take measures to boost growth after India’s strongest electoral mandate in 30 years.
“We expect the markets to be volatile this week until global unrest settles down and we have a clear picture on the Iraq crisis,” Rakesh Goyal, senior vice president at Bonanza Portfolio Ltd., said by e-mail on June 20.
West Texas Intermediate rose for a third day today as insurgents fighting Iraqi forces seized more territory. India, which imports almost 80 percent of its oil, is the region’s most vulnerable economy to this month’s jump in crude prices amid violence in Iraq, according to Barclays Plc.
The Sensex trades at 15.5 times projected 12-month profits, and compares with the MSCI Emerging Markets Index’s multiple of 11. Overseas investors sold a net $ 72.6 million of Indian shares on June 19, paring this year’s inflows to $ 9.91 billion, the most among Asian markets tracked by Bloomberg.
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