* NSE index gains 0.53%, BSE index 0.63% higher
* Markets to correct further - analyst
* Jet’s woes benefit Spicejet, Interglobe
By Arnab Paul
May 15 (Reuters) - Indian shares rose in thin trade on Wednesday, in line with broader Asian markets, led by IT firms, on hopes of a positive outcome from the ongoing U.S.-China trade.
Asian stocks bounced from a 3-1/2-month low after U.S. President Donald Trump said he had a “very good” dialogue with China and insisted talks between the world’s two largest economies had not collapsed.
Global risk appetite suffered after the U.S. raised the pressure by increasing tariffs to 25% from 10% on a previous $200 billion list of Chinese imports.
Domestic markets saw a rebound on Tuesday after nine straight sessions of losses but an analyst expects further correction in the short term.
“I was concerned with the sell-off in the last half an hour yesterday, I expect spot Nifty to fall to 11,170 today and to 10,700 by the end of this month,” said Rudramurthy B.V., managing director and research head at Vachana Investments.
“It is advisable to invest in quality stocks like Reliance Industries Ltd, Bharti Airtel Ltd, HDFC Bank Ltd over cheap valuation stocks such as Yes Bank , Suzlon Energy Ltd and Reliance Power Ltd .”
The broader NSE index was up 0.53% at 11,282.05 as of 0605 GMT, while the benchmark BSE index was 0.63% higher at 37,554.72.
Jet Airways Ltd fell as much as 6.9% a day after three top executives stepped down, diminishing hopes of a revival of the once top private carrier in India. Jet had stopped all operations last month after running out of money.
Union Bank of India Ltd shed 7.4% after posting a wider loss in March-quarter while provisions for non-performing assets rose 2.6%.
Among gainers, Nestle India Ltd climbed 3% higher on higher quarterly profit.
The Nifty IT index gained 0.8% with Tata Consultancy Services Ltd up 1.5%.
Interglobe Aviation Ltd and Spicejet Ltd gained as much as 3.7% and 10%, respectively, on opportunities from the supply gap left by Jet Airways.
Reporting By Arnab Paul in Bengaluru; Editing by Rashmi Aich