Indian stock-index futures were little changed after the benchmark gauge fell for a second day from a record high.
SGX CNX Nifty Index (NIFTY) futures for September delivery slipped less than 0.1 percent to 8,128 as of 10:34 a.m. in Singapore. The underlying CNX Nifty Index on the National Stock Exchange of India Ltd. fell 0.7 percent to 8,094.10 yesterday. The S&P BSE Sensex (SENSEX) lost 0.8 percent to 27,057.41. The Bank of New York Mellon India ADR Index of U.S.-traded shares added 0.3 percent.
The Sensex capped its biggest two-day loss in a month yesterday after reaching an all-time high on Sept. 8 that sent its 14-day relative strength index above the 70 level, seen by some analysts as overbought. The gauge, which has risen 28 percent this year, is valued at 15.8 times projected 12-month earnings, near a two-month high.
“Further consolidation in the markets is likely,” Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services Ltd., wrote in an e-mail yesterday. “We continue to favor quality stocks” such as public-sector banks and oil-and-gas and auto companies, he said.
The Sensex is valued at 15.7 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.2. It is the best performer among the world’s 10 biggest equity markets in 2014.
International investors bought a net $ 89.5 million of Indian stocks on Sept. 9, taking this year’s inflows to almost $ 14 billion, the most among eight Asian markets tracked by Bloomberg.
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 Phani Varahabhotla, Allen Wan