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.
