India’s Nifty Futures Rise After CPI Quickens Less Than Forecast

Indian stock-index futures gained after consumer-price inflation rose less than estimated.

SGX CNX Nifty Index futures for January delivery added 0.2 percent to 8,373.5 at 9:48 a.m. in Singapore. The underlying CNX Nifty Index (NIFTY) advanced 0.5 percent to 8,323 yesterday. The S&P BSE Sensex (SENSEX) also gained 0.5 percent. The Bank of New York Mellon India ADR Index of U.S.-traded shares lost 0.1 percent.

Indian retail inflation accelerated 5 percent from a year earlier in December, data showed after markets closed yesterday, compared with the median 5.3 percent forecast of analysts surveyed by Bloomberg. Central bank Governor Raghuram Rajan reviews interest rates on Feb. 3. Industrial production rose 3.8 percent in November, a separate report showed, compared with a 4.2 percent contraction the previous month.

“We expect the RBI to start the monetary easing cycle from next month, as inflation has remained subdued,” Aneesh Srivastava, who oversees $ 630 million as the chief investment officer with IDBI Federal Life Insurance Co., said by phone yesterday. “Markets will react positively to a good set of CPI and IIP data.”

International investors sold a net $ 42.7 million of local shares on Jan. 9, extending the foreign outflow so far this year to $ 394.3 million. Overseas funds bought $ 16 billion of Indian stocks last year.

The Sensex has risen 0.3 percent this month and is valued at 15.2 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.1.

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, Chan Tien Hin

Nifty Futures

niftyfutures.org@imediaone.com

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