India’s Nifty Index Futures Decline in Singapore Trading

By Chen Shiyin

Nov. 27 (Bloomberg) -- Indian stock futures fell in Singapore, in the first market reaction to coordinated terrorist attacks that killed as many as 80 people in India’s financial hub of Mumbai.

S&P CNX Nifty Index futures for November delivery fell 1.8 percent to 2,700 as of 9:09 a.m. in Singapore. The contract, derived from the 50 stocks on the underlying S&P CNX Nifty Index on the National Stock Exchange of India Ltd., added 4.2 percent in Mumbai yesterday.

Gunmen armed with rifles and grenades raided five-star hotels in India’s first terrorist attack targeting foreigners. Fire spread through the luxury Taj Mahal Palace and Tower hotel, where terrorists were holding as many as 15 people hostage, the Press Trust of India reported. A little-known Islamist group called the Deccan Mujahadeen claimed responsibility for the attacks, PTI said.

India’s benchmark Bombay Stock Exchange Sensitive Index, or Sensex, yesterday rose 3.8 percent to 9,026.72, the most since Nov. 21, after China slashed its key lending rate and the U.S. committed as much as $800 billion to unfreeze lending. Reliance Industries Ltd. and ICICI Bank Ltd. led gains among the largest stocks on heightened speculation India will follow other countries in easing interest rates.

Overseas funds sold a net 3.12 billion rupees ($63 million) of Indian stocks on Nov. 24, increasing outflows from equities this year to $13.5 billion, the nation’s market regulator said.

Multiple attacks have rocked India’s cities this year with bombs planted in markets, theaters and near mosques. Mumbai is an international financial hub, and the location of the attacks caused concern that tourists and visiting business people may be among those killed or wounded.