After opening the day flat, share markets in India have continued to trade rangebound, and are trading marginally below the dotted line. Sectoral indices are trading on a mixed note with stocks in the PSU sector and stocks in the energy sector leading the losses.
The BSE Sensex is trading down by 3 points (down 0.1%), and the NSE Nifty is trading down by 15 points (down 0.1%). Meanwhile, the BSE Mid Cap index is trading down by 0.3%, while the BSE Small Cap index is trading flat. The rupee is trading at 65.16 to the US$.
In news from the global economy. US and Asian shares witnessed buying activity after Chinese President Xi Jinping eased escalating tensions in the US-China trade war.
The Chinese president promised to open the country’s economy further and lower import tariffs on products including cars, which is seen address the concerns of US President Donald Trump as the two countries edged towards an all-out trade war.
Xi also said China would raise the foreign ownership limit in the automobile sector as soon as possible and push previously announced measures to open the financial sector.
Without mentioning Trump’s concern over the huge trade deficit, Xi said China does not seek trade surplus and have a genuine desire to increase imports and achieve greater balance of international payments under the current account.
Trump has been demanding China to cut down US$375 billion trade deficit by US$100 billion in about a month.
In addition, the Chinese president also promised that China will take measures to liberalize automobile investment, significantly lower the import tariffs on cars and protect intellectual property, indirectly addressing major complaints by the US amid the trade row.
The comments sent U.S. stock futures, the dollar and Asian shares higher.
The world’s top two economies had edged towards an all-out trade war after Trump administration last week published a list of about 1,300 Chinese exports worth US$50 billion that could be hit by US tariffs because of Beijing’s alleged theft of intellectual property and technology.
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