January 15, 2020 / 4:31 AM / 8 days ago

Indian shares slip on U.S.-China trade deal worries

* Nifty down 0.5%, Sensex lower 0.4%

* Phase 1 U.S.-China trade deal signing awaited

* Wipro down 3.5% on muted revenue forecast

By Chris Thomas

Jan 15 (Reuters) - Indian shares eased on Wednesday from record highs hit in the previous session, as comments by a top U.S. official that tariffs on China would remain in place for now turned investors cautious ahead of the signing of an initial trade deal.

The NSE Nifty 50 index slipped 0.45% to 12,307.5 by 0414 GMT, while the benchmark S&P BSE Sensex fell 0.38% to 41,791.41. The Indian rupee was weaker at 70.94 against the dollar, versus its previous close of 70.87.

U.S. Treasury Secretary Steven Mnuchin said on Tuesday Washington would keep tariffs on Chinese goods until the completion of a second phase trade agreement, denting hopes of an improvement in relations between the world’s top two economies.

U.S. markets dipped overnight while broader Asian markets slipped on Wednesday on concerns that the tariff dispute is not over.

“We expect markets today to remain mixed, marginally lower at the start, as global cues are not that good due to the trade deal concerns,” said Siddhartha Khemka, head of retail research at Motilal Oswal Securities.

“Details of the deal will be major triggers for Indian equities, especially if they could lead to an improvement in trade climate,” Khemka said, adding that markets would also be swayed by the earnings reports.

Among Indian equities, Wipro Ltd fell 3.5%, its biggest intraday drop in nearly four months, after the software services exporter forecast March-quarter revenue growth below analysts’ expectations and reported a dip in third-quarter profit.

IndusInd Bank Ltd languished at the bottom of the Nifty, slipping 4.4% after the private sector lender reported a spike in bad loan additions in the third quarter.

Larger peer Yes Bank Ltd was down for a fourth straight day, falling as much as 4.5%.

Canara Bank Ltd slipped 2.8% after the lender said it had called off a stake sale in its housing finance unit, Can Fin Homes Ltd, without giving a reason.

MindTree Ltd rose 3.9% to its highest since July 3 after the IT firm beat market expectations with a 3% rise in quarterly profit.

Fairfax-backed CSB Bank Ltd climbed 4.7% after the Reserve Bank of India lifted restrictions on opening new branches. (Reporting by Chris Thomas in Bengaluru; Editing by Subhranshu Sahu)

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