June 12, 2018 / 6:17 AM / 8 days ago

Indian shares rise in line with broader Asia; Trump, Kim raise hopes

* NSE index up 0.35 pct, BSE index 0.40 pct higher

* Trump says expects “signing” after “very good” talks with Kim

* Investors await May inflation data

By Jessica Kuruthukulangara

June 12 (Reuters) - Indian shares rose on Tuesday, in line with broader Asia, after U.S. President Donald Trump said a summit meeting with North Korea’s Kim Jong Un had made “a lot of progress,” raising hopes of a landmark deal to end the nuclear standoff on the Korean peninsula.

Asked by reporters how the historic talks were going, Trump said: “A lot of progress - really very positive. I think better than anybody could have expected. Top of the line, very good. We’re going now for a signing.”

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.16 percent.

“The market is consolidating ahead of events and we are seeing sectoral rotation,” said Deepak Jasani, head of retail research at HDFC Securities.

Sentiment was a bit cautious before the release of May retail inflation data. Retail inflation is expected to have risen to a four-month high last month due to a surge in oil prices, a Reuters poll of economists showed.

“The street has already discounted inflation at 4.8-4.9 percent. If the number comes in at 5 percent or above, then we will probably see some sell-off,” Jasani added.

The broader NSE index was up 0.40 percent at 10,829.80 as of 0610 GMT, while the benchmark BSE index was 0.44 percent higher at 35,640.66. Both indexes were on track for a second consecutive session of gains.

Dr.Reddy’s Laboratories Ltd and Lupin Ltd led gains on the NSE index. Dr.Reddy’s rose as much as 4.7 percent to its highest since April 24, while Lupin climbed up to 3.5 percent to a more than 2-month high.

The Nifty pharma index jumped as much as 2.2 percent to its highest since May 8 and was on track for a fifth consecutive session of gain. The index has gained 7.5 percent so far this month after declining 9.3 percent in May.

“After a continuous and steep fall, valuations of pharma stocks have become attractive because of which there is some buying happening,” Jasani said.

Strides Shasun Ltd climbed as much as 5.5 percent after the drugmaker received final approval from the U.S. Food and Drug Administration for its treatment of influenza symptoms.

Videocon Industries Ltd fell as much as 5 percent to a record low after the bankruptcy court initiated insolvency proceedings against the consumer electronics firm. (Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Subhranshu Sahu)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below