Benchmark indices BSE Sensex and NSE’s Nifty 50 opened on a positive note after ending in the green for five straight sessions last week, after US and China agreed to halt their tariff war.
Oil prices also surged around 4% after the two leaders agreed to a 90-day trade truce. The two leaders – President Donald Trump and President Xi Jinping – met on the sidelines of the G20 meeting. On Monday Trump said that China agreed to reduce tariffs from the current 4-0% on US cars.
China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.
— Donald J. Trump (@realDonaldTrump) December 3, 2018
Even as the benchmark indices traded higher, shared of Sun Pharma took a hit on the whistleblower email claiming that the company’s promoter Dilip Shanghvi and his brother-in-law Sudhir Valia engaged in financial irregularities with stock market scam accused Dharmesh Doshi.
Meanwhile, India’s GDP grew at 7.1% in the quarter on an annualised basis, from a more than two-year high of 8.2% in the previous quarter.
Trump and Xi, decided to halt their escalating trade war during their dinner on the sidelines of the G20 summit in Argentina. Trump agreed to not raise the current 10 per cent tariffs on the $200 billion worth of Chinese goods to 25 per cent ‘at this time’ following a two-and-a-half hour discussion with Xi in Argentina, CNN quoted White House Press Secretary Sarah Sanders confirming in a statement. December 1 was the original deadline for the Trump Administration to go ahead with the plans.
On the other hand, China agreed to purchase ‘very substantial’ amounts of agriculture, energy and other goods in order to restore trade balances.
Chinese State Councilor and Foreign Minister Wang Yi said that the meeting was ‘friendly and candid’, adding that both the leaders agreed to open their markets for each other and ramp up efforts to remove all the additional tariffs.
“If it happens it goes down as one of the largest deals ever made. It will have an incredibly positive impact on farming, meaning agriculture, industrial products, computers, every type of product,” Trump told reporters prior to his departure from Argentina.
The White House Statement confirmed that both Xi and Trump had agreed to immediately start negotiations on the US’ concerns pertaining to technology transfer, cyber theft and intellectual property.