Indian stock-index futures gained after benchmark gauges rose to records for a third day and the European Central Bank expanded its stimulus program.
SGX CNX Nifty Index (NIFTY) futures for January delivery added 0.9 percent to 8,861.5 at 10:12 a.m. in Singapore. The underlying CNX Nifty Index advanced 0.4 percent to a record 8,761.40 yesterday. The S&P BSE Sensex (SENSEX) also increased 0.4 percent to an all-time high, extending this week’s gain to 3.1 percent, the most in 12 weeks. The Bank of New York Mellon India ADR Index of U.S.-traded shares climbed 2.2 percent, extending a five-day surge to 11 percent. Markets in India will be closed on Jan. 26 for a public holiday.
The MSCI Asia Pacific Index advanced today after ECB President Mario Draghi announced an expanded stimulus plan and kept benchmark interest rates at record lows, boosting speculation flows of foreign capital into emerging-market assets will increase.
“The liquidity-driven rally will continue for some more time thanks to the ECB,” Arun Kejriwal, a director at Kejriwal Research and Investment Pvt., said by phone today. “This is a big positive as India is likely to see more inflows because of its improving fundamentals.”
International investors bought a net $ 345.7 million of Indian shares on Jan. 21, the largest daily inflow since Dec. 8, according to data compiled by Bloomberg. That extended this year’s purchases to $ 782.5 million, the most among eight Asian markets tracked by Bloomberg.
Earnings Reports
Shares of Cairn India Ltd. (CAIR) may be active today. The operator of the nation’s biggest oil field on land said after markets closed yesterday that its third-quarter profit declined 53 percent from a year earlier to 13.5 billion rupees ($ 218.8 million). That was less than the 15.7 billion rupees estimated by 26 analysts in a Bloomberg survey.
Colgate-Palmolive (India) Ltd. (CLGT) may report today that quarterly profit rose 21 percent to 1.34 billion rupees, according to the median estimate of 23 analysts in a Bloomberg survey.
The Sensex has gained 5.5 percent this month and trades at 16 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.4.
The gauge’s 50-day historical volatility index, a measure of price swings, rose to the highest level since July yesterday. Its 14-day relative strength index, which tracks how rapidly prices rose or fell during the specified period, was at 70 yesterday. Some investors see readings of more than 70 as a signal to sell.
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 Matthew Oakley, Phani Varahabhotla