Indian stock-index futures dropped after benchmark gauges fell for a second straight day.

SGX CNX Nifty Index (NIFTY) futures for January delivery declined 0.5 percent to 8,281 at 9:53 a.m. in Singapore. The underlying CNX Nifty Index fell 0.3 percent to 8,277.55 yesterday. The S&P BSE Sensex (SENSEX) also retreated 0.3 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares dropped 1 percent.

Data this week showed retail and wholesale inflation quickened in December from the previous month, while factory output grew, easing pressure on Reserve Bank of India Governor Raghuram Rajan to cut interest rates before the government presents its budget at the end of next month.

“We expect inflation to be structurally lower on account of lower crude oil prices and broader interest rates to fall at least 100 basis points over next 12 months, which would be one of the key catalysts for economic growth,” Dinesh Thakkar, chairman of Angel Broking Ltd., wrote in an e-mail yesterday.

The central bank meets to review policy on Feb. 3.

International investors bought a net $ 41 million of local shares on Jan. 13, paring this month’s outflow to $ 311.6 million. Foreign funds bought $ 16 billion of stocks last year.

The Sensex has fallen 0.6 percent so far this year and is valued at 15.1 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.2.

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