Indian shares rise as hopes of U.S.-China trade deal lift sentiment

Credit: REUTERS/FRANCIS MASCARENHAS

Indian shares rose in early trade on Friday, tracking gains in broader Asia as risk appetite was whetted by comment from a senior U.S. official that the United States and China are getting close to an interim trade pact.

By Sethuraman N R

Nov 15 (Reuters) - Indian shares rose in early trade on Friday, tracking gains in broader Asia as risk appetite was whetted by comment from a senior U.S. official that the United States and China are getting close to an interim trade pact.

White House economic adviser Larry Kudlow said the world's two largest economies were in close touch via telephone, and an agreement could be reached soon.

That helped to lift MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS up 0.67%, Japan's Nikkei .N225 0.76% and Australian shares .AXJO by 0.8%. MKTS/GLOB

The NSE Nifty 50 index .NSEI was up 0.5% at 11,922.70, as of 0413 GMT, while S&P BSE Sensex .BSESN was 0.6% higher at 40,522.

"There is some optimism coming in on a deal being brokered between the U.S and China," said Saurabh Jain, assistant vice-president research, SMC Global Securities.

Jain, however, cautioned the gains could be short-lived as domestic lenders may soon come under pressure due to their exposure to telecom services provider Vodafone Idea, which posted huge losses on Thursday.

Vodafone Idea VODA.NS on Thursday reported the biggest quarterly loss in India's corporate history after making provisions for outstanding government dues.

Rival Bharti Airtel BRTI.NS reported a consolidated net loss of 230.45 billion rupees ($3.23 billion) in the three months to September.

The Nifty public sector undertaking .NIFTYPSU and metal stocks .NITYMET led gains, rising 3% and 0.5%, respectively.

Miner Vedanta Ltd VDAN.NS posted a surge in September quarter net profit, sending share up 1%.

(Reporting by Nallur Sethuraman in Bengaluru; Editing by Subhranshu Sahu)

((Sethuraman.NR@thomsonreuters.com; (Within U.S. 1-646-223-8780, Outside U.S. +91 8067496031); Reuters Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))

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