Indian stock-index futures dropped after benchmark gauges fell by the most since July 11 yesterday amid a global equity selloff.
SGX CNX Nifty Index (NIFTY) futures for August delivery declined 0.7 percent to 7,691 at 10:05 a.m. in Singapore. The underlying CNX Nifty Index slid 0.9 percent to a 7,721.30 yesterday, the biggest loss since July 11. The S&P BSE Sensex (SENSEX) retreated 0.7 percent. The Bank of New York Mellon India ADR Index of U.S.- traded lost 1.7 percent.
The Sensex gained 1.9 percent in July, a sixth monthly advance and the longest winning streak since the eight months through January 2007. The MSCI Asia Pacific Index fell today, extending a global selloff amid weaker-than-forecast corporate earnings in the U.S. and fresh concerns over credit markets.
“Weak global cues are keeping investor sentiment subdued,” said Suniil Pachisia, vice president at Pratibhuti Viniyog Ltd., said by phone today.
Bharat Heavy Electricals Ltd. (BHEL) may report today that net income fell 29 percent from a year earlier in the three months ended June to 3.28 billion rupees ($ 54.2 million), according to the median estimate of 35 analysts in a Bloomberg survey.
Ten of the 16 Sensex companies that have announced results so far for the June quarter have beaten or matched forecasts.
The Sensex has surged 22 percent this year, the best performer among the world’s 10 biggest markets, and is valued at 15.4 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s multiple of 11.
International investors sold $ 45.9 million of local stocks on July 28, the first net outflow in 10 days. That pared this year’s purchases to $ 12.1 billion, still the most among eight Asian markets tracked by Bloomberg.
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