Indian stock-index futures dropped after benchmark gauges fell for the first time in three days.

SGX CNX Nifty Index (NIFTY) futures for August delivery declined 0.4 percent to 7,667.5 at 9:54 a.m. in Singapore. The underlying CNX Nifty Index lost 1 percent to 7,672.05 yesterday. The S&P BSE Sensex (SENSEX) slid 0.9 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares decreased 1.5 percent.

The Sensex has surged 21 percent this year, the best performer among the world’s 10 biggest markets, as international investors poured money into the nation’s shares amid expectations a new government under Prime Minister Narendra Modi would spur growth in an economy expanding at near the slowest pace in a decade.

“Given the run-up we had this year, we expect the markets to trade in a broad range, with some investors taking some money off the table,” Kishor Ostwal, managing director at CNI Research Ltd., said today.

Modi’s cabinet approved last night raising the cap on foreign direct investment in defense to 49 percent, and allowing foreign investment in railway infrastructure, a government official said, asking not to be identified.

International investors bought a net $ 2 million of local stocks on Aug. 5, according to data compiled by Bloomberg. They have purchased $ 11.7 billion of Indian shares this year, the most among eight Asian markets tracked by Bloomberg.

The Sensex is valued at 15.2 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s multiple of 11.

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