By Vivek Kumar M
(Reuters) -Indian shares were muted on Tuesday as gains in metal stocks, driven by optimism over a U.S.-China trade deal, were offset by broad profit-taking after the recent rally.
The Nifty 50 was up 0.2% to 26,018.25, while the BSE Sensex rose 0.14% to 84,900.55, as of 9:49 a.m. IST.
Ten of the 16 major sectors advanced. The broader small-caps and mid-caps were up 0.3% and 0.1%, respectively.
The 50-stock index has gained about 3.3% over the past eight sessions, rising in seven of them, and now sits roughly 1.3% below its record high from September 2024.Metal stocks rose 1.2% to lead sectoral gains after U.S. and Chinese officials finalized a trade framework for Presidents Donald Trump and Xi Jinping to consider later this week.
“If there is a breakthrough in the Trump-Xi meeting on Thursday, that will give another leg-up to the markets globally where the leading indexes like S&P 500, Nikkei and Kospi are at record highs,” said VK Vijayakumar, chief investment strategist at Geojit Investments.
Tata Steel rose 2.1%, and was the top Nifty gainer, as Motilal Oswal upgraded it to “buy” from “neutral” on strong domestic outlook.
Vijayakumar added that prospects of a rate cut by U.S. Fed is another positive for the market in the near term.
Federal Reserve policymakers are expected to cut rates by 25 basis points on Wednesday, with markets anticipating more reductions later in 2025.
Public sector banks climbed over 1% to a record high, extending Monday’s 2% rise after a Reuters report said India plans to raise the direct foreign investment limit in state-run banks to 49%.
Canara Robeco Asset Management fell 9% after reporting weaker quarterly profit, while Sai Silks (Kalamandir) jumped 10% on stronger September-quarter earnings.
(Reporting by Vivek Kumar M; Editing by Sumana Nandy and Nivedita Bhattacharjee)
