INDIA STOCKS-Indian shares rise on optimism over trade negotiations, potential RBI rate cut

By Bharath Rajeswaran and Vivek Kumar M

June 4 (Reuters) - Indian shares rose on Wednesday, snapping a three-day slide on expectations of progress in U.S.-China trade negotiations and an anticipated rate cut by the Reserve Bank of India later this week.

The Nifty 50 .NSEI rose 0.32% to 24,620.2, while the BSE Sensex .BSESN added 0.32% to 80,998.25.

Twelve of the 13 major sectors advanced on the day. The broader smallcaps .NIFSMCP100 and midcaps .NIFMDCP100 rose about 0.8% each.

"Markets recovered on anticipated relief on the trade front ahead of the talks between U.S. President Donald Trump and China's President Xi Jinping and expected rate cut by RBI on Friday," said Devarsh Vakil, head of prime research at HDFC Securities.

Trump said Xi Jinping is "tough" to negotiate with, days after alleging that China backtracked on tariff agreements.

Washington pressed trade partners for proposals by Wednesday while higher U.S. duties on steel and aluminium imports took effect.

Asian shares edged up, with South Korea leading gains after liberal candidate Lee Jae-myung’s election win raised stimulus hopes. MKTS/GLOB

Among individual stocks, Gland Pharma GLAD.NS gained 2.2% after getting approval from U.S. drug regulator for an injection to help increase blood pressure in adults.

Garden Reach Shipbuilders GRSE.NS rose 6.5% after signing a deal with Norway's Kongsberg Oslo to build polar research vessel indigenously.

Swiggy SWIG.NS jumped 8.9% on multiple block deals at a premium over Monday's close.

PI Industries PIIL.NS advanced 4.2% after the agrochemicals maker's key client Japan's Kumiai Chemical 4996.T forecasted higher half-year profit.

On the flipside, Sun Pharma Advanced Research SPRC.NS tumbled 19.7% after the company said that its drug treating psoriasis failed mid-stage study.

Aditya Birla Fashion and Retail ADIA.NS slumped 10.7% on media reports that Flipkart is offloading its entire 6% stake via block deal on the day.