Sensex, Nifty inch up on trade deal optimism
Indian shares extended gains on Tuesday on increasing hopes of a trade truce between the United States and China, while optimism around solid, consumer-driven economic growth in the U.S. aided sentiment.
Indian shares extended gains on Tuesday on increasing hopes of a trade truce between the United States and China, while optimism around solid, consumer-driven economic growth in the U.S. aided sentiment. The NSE Nifty 50 Index <.NSEI> inched up 0.13% at 11,956.05, as at 0350 GMT, while the S&P BSE Sensex index <.BSESN> rose 0.19% to 40,385.03. MSCI`s broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> ticked up 0.1% after hitting a four-month high in the previous session.
In the United States, all three major stock indexes posted record closing highs on Monday, after U.S. officials indicated that a trade deal with China could be signed this month. In domestic markets, private sector lender Yes Bank Ltd was the top gainer on the NSE index, rising as much as 8.84% to its highest since Oct. 31.
This pushed the Nifty Private bank index <.NIFPVTBNK> 0.3% higher. The Nifty PSU Bank index <.NIFTYPSU>, which tracks the country`s state-run lenders, advanced 0.5%. It was on track for an eighth straight session of gains, with shares of Allahabad Bank gaining as much as 1.81%. The Nifty auto index <.NIFTYAUTO> rose as much as 0.62%, with shares of Tata Motors Ltd rising over 1.5%.
Mahindra and Mahindra`s shares were flat after the company said it will recall a limited batch of XUV300 vehicles to fix a faulty suspension component. Meanwhile, Prime Minister Narendra Modi said on Monday that India will not join a China-led regional trade pact as it failed to address Delhi`s concerns over market access. Among losers, shares of Bharat Electronics Ltd fell as much as 4.94%, its lowest in nearly two weeks, after the firm reported a drop in quarterly profit on Monday. Indian Overseas Bank slid over 14% after the bank posted a wider quarterly loss.
The Nifty IT index <.NIFTYIT> inched lower, with shares of software services firm Tata Consultancy Services Ltd shedding over half a percent. The FMCG index <.NIFTYFMCG>, which tracks fast-moving consumer goods, was down 0.56%. Shares of Dabur India Ltd fell 0.67%. The company will report quarterly numbers later in the day. Tech Mahindra Ltd and PNB Housing Finance Ltd rose 0.65% and 2.57%, respectively. Both companies will report quarterly results later in the day.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.