Indian stock-index futures declined after the equity benchmark gauges advanced to a two-week high yesterday.
SGX CNX Nifty Index (NIFTY) futures for September delivery fell 0.2 percent to 8,132.5 as of 10:05 a.m. in Singapore. The underlying CNX Nifty Index on the National Stock Exchange of India Ltd. added 0.3 percent to 8,146.30 yesterday. The S&P BSE Sensex (SENSEX) advanced 0.4 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares slipped 0.2 percent.
The Sensex has increased 29 percent this year, the best performer among the world’s 10 biggest markets, as foreigners pumped the most amount of inflows in India this year among eight Asian markets tracked by Bloomberg. The gauge is valued at 15.7 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.
“The market is in a healthy phase of consolidation,” Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services Ltd., wrote in an e-mail yesterday.
Coal India Ltd. (COAL), the biggest producer of the fuel, may be active today. The company is considering building 70 billion rupees ($ 1.2 billion) of solar projects, said people familiar with the plan.
India’s state-run banks, including State Bank of India and Bank of Baroda, may be in focus. The Cabinet may consider cutting stake in the lenders to as low as 52 percent, a government official said in New Delhi yesterday, asking not to be identified citing department policy.
International investors bought a net $ 18.5 million of Indian stocks on Sept. 19, taking this year’s inflows to $ 14.2 billion, the highest amount in Asia.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Phani Varahabhotla, Chan Tien Hin