Bloomberg News

India’s Nifty Futures Signal First Gain for Stocks in Three Days

June 09, 2013

Indian (SENSEX) stock-index futures gained, signaling the first advance for equities in three days, as U.S. and Japanese data boosted confidence in the global economy.

SGX CNX Nifty Index futures for June delivery climbed 0.9 percent to 5,935 at 10:05 a.m. in Singapore. The underlying CNX Nifty (NIFTY) Index dropped 0.7 percent to 5,881 on June 7. The S&P BSE Sensex slid 0.5 percent to 19,429.23. The Bank of New York Mellon India ADR Index of U.S.-traded shares rose 0.3 percent.

Data on June 7 showed American employers took on 175,000 workers in May, beating the 163,000 median forecast in a Bloomberg survey. The U.S. accounted for 11 percent of India’s exports in the fiscal year ended March 2012. Japan’s gross domestic product expanded an annualized 4.1 percent in the first quarter, compared with a preliminary calculation of 3.5 percent, the nation’s government reported today.

Steelmakers may be active after the rupee completed its fifth weekly decline against the dollar amid concern the U.S. Federal Reserve may scale back debt purchases that have fueled fund flows to emerging markets. The Indian currency’s tumble to its weakest level versus the dollar in almost a year increases the value of overseas steel sales.

The Sensex has slumped 4.2 percent since climbing to its highest level since January 2011 on May 17. The gauge is valued at 13.4 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s 10 times.

Overseas investors sold a net $39.7 million of Indian stocks on June 6, paring this year’s inflows to $15.2 billion, data compiled by Bloomberg show.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net

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


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