Bloomberg News

India Nifty Stock-Index Futures Rise Before Consumer-Price Data

May 12, 2013

Indian (SENSEX) stock-index futures gained, signaling benchmark gauges will extend a weekly advance before the release of data that may show inflation slowed last month.

SGX CNX Nifty Index futures for May delivery added 0.2 percent to 6,114.5 at 9:33 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index on the National Stock Exchange of India Ltd. rose 0.2 percent to 6,107.25 in a special trading session on May 11. That’s the highest level since Jan. 4, 2011. The S&P BSE Sensex index climbed 0.2 percent to 20,122.32, the highest in more than 28 months. The Bank of New York Mellon India ADR Index of U.S.- traded shares gained 0.3 percent to 1,082.92.

Gains in consumer prices probably slowed to 9.74 percent last month from 10.39 percent in March, according to the median estimate of economists in a Bloomberg News survey. Central banks from India to Europe and South Korea cut borrowing costs recently to bolster economic growth.

“The markets are showing buoyancy because of easy global liquidity,” Deven Choksey, managing director at K.R. Choksey Shares & Securities Pvt. in Mumbai, said by telephone yesterday. “The earnings season has been satisfactory so far.”

The Sensex climbed 2.8 percent last week, its fourth straight advance.

Profits at just two of the 14 Sensex companies that have reported March-quarter earnings have trailed estimates, data compiled by Bloomberg show. That compares with about 43 percent that missed forecasts in the three months ended Dec. 31, and 40 percent in the previous two quarters.

Relative Strength

Reserve Bank of India Governor Duvvuri Subbarao lowered the repurchase rate to 7.25 percent from 7.5 percent on May 3.

The Sensex’s 14-day relative strength index, measuring how rapidly prices rose or fell during the specified period, was above 70. Some investors see readings above 70 as a signal to sell. The gauge is valued at 13.91 times forecast 12-month profits, the highest reading since Oct. 10, compared with the MSCI Emerging Markets Index’s 10.6 times.

Foreign investors bought $146 million of local shares on May 9, taking this year’s inflows to a net $12.5 billion, data from the market regulator show.

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net


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