April 5, 2018 / 5:45 AM / 4 months ago

Sensex rises over 1 percent on global cues; banks, metal stocks lead

(Reuters) - Indian shares rose on Thursday, tracking global equity markets that recovered after fears of a Sino-U.S. trade war eased, with metal stocks such as Hindalco Industries Ltd and banks such as ICICI Bank Ltd among top gainers.

A man (R) watches a large screen displaying India's benchmark share index on the facade of the Bombay Stock Exchange (BSE) building in Mumbai, India, August 25, 2015. REUTERS/Shailesh Andrade/File Photo

The United States expressed willingness to negotiate a resolution to the trade dispute with China after Beijing retaliated against proposed U.S. tariffs on $50 billion in Chinese goods by targeting key American imports.

Asian shares bounced from two-month lows, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.6 percent.

“All sectors which were impacted yesterday, including metals, are recovering today mainly because the fears of escalation in trade wars have receded, at least for the time-being,” said Deepak Jasani, head of retail research at HDFC Securities.

The Nifty was up 1.34 percent at 10,264.15 as of 0529 GMT, while the benchmark Sensex was 1.28 percent higher at 33,442.73.

The Nifty metal index climbed as much as 4 percent. Hindalco led gains on the NSE index, rising as much as 6.2 percent, and was set to snap four sessions of losses.

Vedanta Ltd gained over 5 percent, while Tata Steel Ltd was up as much as 3.8 percent.

Banking stocks rose ahead of a monetary policy decision by the country’s central bank later in the day, where it is expected to hold interest rates steady.

“The possibilities of a negative or positive surprise in the RBI (Reserve Bank of India) policy are limited. Outlook on growth, inflation and the way RBI perceives the developments abroad will be important to watch out for,” Jasani said.

The Nifty bank index gained as much as 1.6 percent, with State Bank of India and ICICI Bank Ltd up more than 2 percent each.

Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Biju Dwarakanath

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