The latest trade truce between China and the United States offered investors the hope of an eventual deal that the feuding superpowers can live with, though the possibility of another tariff flare-up remained a risk for markets.

Sensex dipped 53.49 points while Nifty ended flat on Tuesday, as profit booking in financial stocks outweighed gains from U.S.-China trade optimism and RBI support, despite selective buying in IT and pharma sectors.

U.S. equities were mostly edging higher at midday with the market watching for developments in U.S.-China trade negotiations.

Even under the best-case scenario for the stock market, the S&P 500 is “trading slightly above what could be justified fundamentally,” according to Sevens Report Research. The U.S. stock market has risen this month after a strong May,

Gift Nifty was trading around 25,245 level, a premium of nearly 63 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Exports from China to the U.S. plummeted last month, but that wasn't having much of an impact on the stock market. Investors were instead zeroing in on talks in London that they hope will yield a longer-term trade truce between the world's two largest economies.

A huge frontloading wave this spring was credited with helping U.S. corporations put up solid first-quarter corporate earnings, while also giving businesses and households a buffe