Plus   Neg

Sensex, Nifty End Lower On Trade Deal Worries

Indian shares ended lower on Wednesday after hitting record highs in the previous two sessions.

Sentiment was dented after a top U.S. official said tariffs on China would stay until a Phase 2 deal is completed.

The United States and China are expected to sign a 'Phase One' trade deal later today. The deal will lead to China buying more American agricultural goods, machinery especially aircraft and energy products, but does not tackle issues such as subsidies.

U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer said there was no agreement in place with China on further tariff reductions.

If the Chinese don't achieve the purchase price targets, the U.S. could impose new tariffs.

Adding to worries over U.S.-China trade relations, media reports suggest that the Trump administration is moving closer to a set of rules that would tighten sales of semiconductors to Chinese technology giant Huawei.

The benchmark S&P BSE Sensex dropped 79.90 points, or 0.19 percent, to 41,872.73, while the broader NSE Nifty index ended down 19 points, or 0.15 percent, at 12,343.30.

IndusInd Bank slumped 5.6 percent to extend losses from the previous session after the lender posted healthy quarterly earnings but reported higher provisions for bad loans.

Wipro lost 3.5 percent after the country's third-largest IT firm reported 3.2 percent year-on-year drop in consolidated profit for the December quarter.

BPCL, Infosys and SBI all fell over 1 percent.

Yes Bank rallied 3.5 percent after it bought around 30 percent stake in a wholly-owned subsidiary of Reliance Power pursuant to invocation of pledged shares.

Automakers advanced, with HeroMotoCorp climbing 2.5 percent and Tata Motors rising 2 percent.

Titan Company shares advanced 1.3 percent. Data showed that ace investor Rakesh Jhunjhunwala bought an additional 16.2 lakh shares in the company during the October-December quarter.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT