Mumbai: Shares edged higher on Friday, snapping seven sessions of declines, but gains were capped as weakness in broader Asian markets over Sino-US trade tensions kept investors on the edge.
Asian shares hovered near two-month lows as US President Donald Trump’s tariff increase on $200 billion worth of Chinese goods took effect, escalating tensions between the world’s biggest economies.
The White House said the two sides would resume negotiations on Friday morning in Washington after concluding the first of two days of talks on Thursday, and try to rescue the trade deal that is close to collapsing.
This fuelled hopes for some investors that the U.S. administration could revoke the new tariff hike once a deal is reached.
The broader NSE index was up 0.28 percent at 11,333.45 as of 0625 GMT, while the benchmark BSE index inched up 0.32 percent to 37,679.68.
“Markets were due for a rebound after seven days of continuous fall. However, the uncertainty will remain till election results are out,” said Jayant Manglik, President, Religare Broking, adding that the US-China dispute is also worrisome as it will ultimately impact the dollar and global gross domestic product (GDP).
Technicals suggest that the NSE index has support at 11,221, the 50 percent Fibonacci retracement level on the uptrend from February 19 low to April 18 high, while 11,371, the 38.2% level may act as a resistance.
Financials were among the biggest gainers on the main board. Indiabulls Housing Finance Ltd was among top gainers on the NSE index, adding 3.7 percent. State Bank of India, which is due to report results later in the day, rose over 1 percent.
Shares of PNB Housing Finance Ltd surged more than 9 percent after the non-bank lender posted strong March quarter results on Thursday.
Among gainers, Jet Airways soared on hopes of a new saviour for the ailing carrier after a report said London-based Adi Partners has put in a bid for Jet.
IT services firm HCL Technologies shed the most on the NSE index, falling as much as 5.6 percent. The stock saw its worst day in nearly five months after the company reported negative growth in its biggest revenue-generating segment of financial services.
South Indian Bank shares marked their biggest intraday percentage loss in over three months after it posted a 38 percent plunge in quarterly profit.
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Updated Date: May 10, 2019 12:45:53 IST