Indian stock rally loses steam ahead of U.S.-China trade deal

A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai

BENGALURU (Reuters) - Indian shares snapped a four-day gaining streak on Wednesday after a top U.S. official said tariffs on Chinese goods would remain in place for now, making investors skittish ahead of the signing of an initial trade deal between the two countries.

The NSE Nifty 50 Index <.NSEI> ended 0.15% lower at 12,343.3, after falling to 12,278.75 earlier in the day, while the S&P BSE Sensex index <.BSESN> settled 0.19% lower to 41,872.73 after hitting a session low at 41,648.110.

U.S. Treasury Secretary Steven Mnuchin said late on Tuesday that Washington would keep tariffs on Chinese goods until the completion of a Phase 2 trade agreement between the top two economies.

IndusInd Bank Ltd <INBK.NS> shed the most on the Nifty and Sensex, falling 5.5% to its lowest close since Nov. 19, a day after the private-sector lender reported a spike in bad loan additions for the third quarter.

Wipro Ltd <WIPR.NS> slid 3.5%, marking its worst day in over six months, after the IT firm forecast March-quarter revenue growth below analysts' expectations and reported a dip in third-quarter profit.

Meanwhile, two-wheeler maker Hero MotoCorp Ltd <HROM.NS> surged in the last hour of trade to settle 2.7% higher, while Yes Bank Ltd <YESB.NS> climbed 3.1%.


(Reporting by Chris Thomas in Bengaluru; Editing by Devika Syamnath)