Indian stock-index futures advanced after the benchmark equity gauge posted a weekly loss.
SGX CNX Nifty Index futures for August delivery rose 0.7 percent to 7,667 at 10:08 a.m. in Singapore. The underlying CNX Nifty Index (NIFTY) on the National Stock Exchange of India Ltd. fell 1.5 percent to a 7,602.60 on Aug. 1. The S&P BSE Sensex (SENSEX) dropped 1.6 percent to 25,480.84, taking its weekly decline to 2.5 percent. The Bank of New York Mellon India ADR Index of U.S.- traded shares added 0.3 percent to 1,334.85.
Nine of the 16 Sensex companies that have announced results so far for the June quarter have exceeded or matched forecasts. The Reserve Bank of India meets on Aug. 5 to review monetary policy. Central bank Governor Raghuram Rajan will leave the benchmark repurchase rate unchanged at 8 percent, according to all 20 economists surveyed by Bloomberg.
“Earnings expectations are higher while results are in-line to positive,” Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services Ltd., said by e-mail.
The Sensex trades at 15.1 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s multiple of 11.1. The measure has surged 20 percent this year and is the best performer among the world’s 10 biggest markets.
International investors have poured $ 11.9 billion into Indian equities this year, the most in Asia, on expectations Prime Minister Narendra Modi’s administration will help spur an economy growing at near the slowest pace in a decade.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at firstname.lastname@example.org
To contact the editors responsible for this story: Michael Patterson at email@example.com Phani Varahabhotla, Chan Tien Hin