Indian stock-index futures fell before derivatives contracts expire today.
SGX CNX Nifty Index (NIFTY) futures for July delivery dropped 0.1 percent to 7,779.5 at 9:51 a.m. in Singapore. The most-active August contract declined 0.2 percent to 7,817. The underlying CNX Nifty Index rose 0.6 percent to a 7,791.40 yesterday, while the S&P BSE Sensex (SENSEX) climbed 0.4 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares rose 0.8 percent.
The Sensex has advanced 2.7 percent in July, headed for a sixth monthly gain, the longest winning streak since the eight months through January 2007. Derivatives contracts in India expire on the final Thursday of every month. The Reserve Bank of India meets on Aug. 5 to review monetary policy.
“We may see range-bound moves till the credit policy next week,” Gaurang Shah, vice president at Geojit BNP Paribas Financial Services Ltd., told Bloomberg TV India yesterday. “We are advising clients to buy on dips.”
Central bank Governor Raghuram Rajan will leave the benchmark repurchase rate unchanged at 8 percent, according to all 20 economists surveyed by Bloomberg. India’s consumer price index rose a less-than-forecast 7.31 percent in June, compared with 8.28 percent a month earlier.
Prime Minister Narendra Modi’s administration has prioritized curbing food costs, part of a sweeping agenda that also seeks to revive economic growth from near a decade low. The central bank has signaled it could ease monetary policy if inflation slows faster than anticipated.
Earnings Reports
ICICI Bank Ltd. (ICICIBC), India’s second-largest lender, may report today that profit rose to 25.7 billion rupees ($ 428 million) in the quarter ended June, according to the median of 35 analyst estimates compiled by Bloomberg.
Maruti Suzuki India Ltd. (MSIL), India’s biggest carmaker, may post net income of 7.3 billion rupees, compared with 6.3 billion rupees a year earlier, according to 36 analysts in a Bloomberg survey. Utility NTPC Ltd. may say profit declined 11 percent to 22.7 billion rupees, according to the median of 28 analyst estimates compiled by Bloomberg.
Seven of the 13 Sensex companies that have announced results so far for the June quarter have beaten or matched forecasts.
International investors bought $ 20.1 million of local stocks on July 25, taking this year’s inflows to $ 12.1 billion, the most among eight Asian markets tracked by Bloomberg.
The Sensex has jumped 23 percent this year and is valued at 15.5 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s 11.2 multiple.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Matthew Oakley, Chan Tien Hin