Indian Nifty Futures Gain After Indexes’ Best Quarter in 5 Years

Indian stock-index futures rose after the SGX CNX Nifty Index capped the best quarterly advance in almost five years.

Nifty futures for July delivery increased 0.2 percent to 7,642 at 9:53 a.m. in Singapore. The underlying gauge climbed 1.4 percent to 7,611.35 yesterday, the biggest gain since June 6. The S&P BSE Sensex (SENSEX) rose 1.3 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares added 0.9 percent.

The Sensex advanced 14 percent in the quarter ended June 30, the most since the three months through September 2009, as international investors bought Indian stocks on expectations a new government under Prime Minister Narendra Modi will curb Asia’s fastest consumer inflation and boost an economy growing at near the slowest pace in a decade. The government presents its federal budget on July 10.

“The countdown has begun for the budget and market participants are eyeing a pre-budget rally,” Jayant Manglik, president of retail distribution at Religare Securities Ltd., wrote in an e-mail.

HSBC Holdings Plc and Markit Economics release the purchasing managers index for June today, a monthly gauge of manufacturing output. The measure was at 51.4 in May, compared with the five-year average of 52.4.

Shares of Indian Oil Corp. (IOCL) may be active. The company said yesterday it will raise gasoline prices by 1.69 rupees per liter, and diesel by 0.50 rupees per liter, effective today.

Overseas investors bought a net $ 37.8 million of Indian shares on June 27, extending this year’s inflow to $ 9.92 billion, the highest after Taiwan among eight Asian markets tracked by Bloomberg.

The Sensex has surged 20 percent this year, the best performer among the world’s 10 biggest markets, and trades at 15.6 times projected 12-month profits. The MSCI Emerging Markets Index is valued at 11 times.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at

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

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