BENGALURU, Feb 25 (Reuters) - Indian shares were slightly higher on Tuesday as Asian markets steadied after a steep sell-off a day earlier, while U.S. President Donald Trump’s two-day visit failed to boost sentiment.
The broader NSE Nifty 50 index was up 0.2% at 11,854 as of 0403 GMT, while the benchmark S&P BSE Sensex also rose 0.2% to 40,423.40.
The Nifty index tumbled 2.1% and the Sensex plunged nearly 2% on Monday, in a broad global market sell-off sparked by fears of a greater impact on economic growth from the rapid spread of the coronavirus outside China.
“Markets are mostly on a contagion mode due to coronavirus. There has been a little bit of correction. If the Asian markets are up that’s a little bit of good news for other markets,” said Naveen Kulkarni, head of research at Reliance Securities.
“There is nothing major in the works as far as an imminent trade deal between the U.S. and India is concerned,” he added.
Trump said on Monday the two countries will sign defence deals worth $3 billion and that both sides were at the early stages of reaching an “incredible” trade agreement.
Asia-Pacific shares outside Japan inched up 0.2%, while E-mini futures for the S&P 500 bounced on Tuesday after the index suffered steep losses overnight.
Oil and Natural Gas Corp was the top gainer, rising 2.14%, while UPL Ltd was the top laggard, falling 1.32%.
Shares of Indian two-wheeler manufacturer TVS Motor Co Ltd tumbled 6.41% after it warned of a 10% drop in February production as auto parts supply is being hit by the coronavirus epidemic.
The blue-chip Nifty 50 index has fallen over 4% from its Jan. 20 record intraday high of 12,430.50, weighed down by the coronavirus outbreak and a lacklustre federal budget. (Reporting by Nallur Sethuraman in Bengaluru; Editing by Sriraj Kalluvila)