Sensex, Nifty end lower on US trade deal uncertainty

Indian shares closed lower on Thursday, as investors booked profit on uncertainty related to a trade deal with the United States.

The US President Donald Trump said the United States and India were working on a major trade deal but he was not sure if it would be completed before the US presidential election in November.

The broader NSE Nifty 50 index, as well as the benchmark S&P BSE Sensex, dropped 0.37 per cent to 12,080.85 and 41,170.12, respectively.

Also read: Here's why no trade deal should be expected during Donald Trump's India visit

Both the indexes had risen over 1 per cent on Wednesday.

For the week, Nifty 50 index shed 0.27 per cent, while the Sensex lost 0.21 per cent.

"After the recent rally, traders are paring their positions ahead of the long weekend," said A.K. Prabhakar, head of research at IDBI Capital.

The domestic markets will remain closed for Shivratri holiday on Friday.

Also read: Coronavirus outbreak: China's Hubei province reports 108 more deaths; 2 dead in Iran

"Investors are waiting for clarity on the status of China's industries over coronavirus and expecting some measures from the Indian government," Prabhakar added.

Scores of new coronavirus cases and the first death in South Korea fanned fears on Thursday of the global spread of the pathogen as research suggested it was more contagious than thought.

Cipla Ltd, which ended down 2.6 per cent, lost the most in the Nifty 50 index, while IndusInd Bank was the top gainer at 3.5 per cent.