Markets

Sensex, Nifty shares tepid as investors await more details on trade deal

File photo of Bombay Stock Exchange,

File photo of Bombay Stock Exchange,   | Photo Credit: Vivek Bendre

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Indian shares pared early gains to trade little changed on Monday, as initial enthusiasm over a phase one Sino-U.S. trade pact gave way to concerns about the lack of concrete details on the agreement.

The NSE Nifty 50 Index was up 0.02% at 12,089.50, as of 0354 GMT, while the S&P BSE Sensex index rose 0.05% to 41,027.19.

The “phase one” agreement between U.S. and China suspended a threatened round of U.S. tariffs on a $160 billion list of Chinese imports that was scheduled to take effect on Sunday. The United States also agreed to halve the tariff rate, to 7.5%, on $120 billion worth of Chinese goods.

“The rally will be measured because there are concerns about wether things will go as planned on the U.S.-China front,” said Deepak Jasani, head of retail research at HDFC Securities.

The lingering scepticism about the deal and ongoing relations between China and the United States also capped a rally in broader Asian peers, with the MSCI's broadest index of Asia-Pacific shares outside Japan up 0.27%.

The Nifty PSU Bank index, which tracks the country's state-run lenders, firmed 0.5%, with State Bank of India gaining 1.4%.

The Competition Commission of India on Friday approved the acquisition of a stake in SBI General Insurance Company by Napean Opportunities LLP and Honey Wheat Investment Ltd. State Bank of India will continue to hold a majority stake in its insurance arm.

Shares of private sector lender Yes Bank Ltd were the top gainer on the NSE index in early trade, rising nearly 3%.

However, strength in oil prices, which were at three-month highs, sent shares of state-run oil marketing companies lower. Hindustan Petroleum Corp and Bharat Petroleum Corp inched 0.6% and 0.27% lower, respectively.

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Printable version | Jan 22, 2020 7:39:40 AM | https://www.thehindu.com/business/markets/indian-shares-tepid-as-investors-await-more-details-on-trade-deal/article30317500.ece

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