Indian shares rise as gains in auto, financials outweigh IT losses

Indian shares advanced on Wednesday as gains in financials, auto and consumer goods outweighed losses in information technology companies, while lower oil prices further lifted sentiment.

The benchmarks Nifty 50 rose 0.59% to 24,005.85 and the BSE Sensex gained 0.58% to 76,922.64.

Brent crude futures fell 1% to $72 per barrel.

Iran said on Tuesday it would not meet top U.S. envoys who flew to the region after the outbreak of hostilities, though a senior Iranian official told Reuters on Wednesday that indirect talks between Tehran and Washington had been underway in Doha since Tuesday night.

Brent crude is down 43% from the Iran war peak of $126.41 per barrel in April 2026.

“We are seeing a broad-based uptick in the market, barring IT sector, as the decline in crude oil prices has addressed one of the biggest fundamental concerns,” said Pankaj Pandey, head of retail research at ICICI Securities.

Twelve of the 16 major sectors advanced, while broader small-caps and mid-caps added 0.4% and 0.3%, respectively.

Heavyweight financials rose 0.9%, led by 1.7% jump in Axis Bank and a 2% gain in State Bank of India .

Auto stocks climbed 1.2%, with Ashok Leyland and Mahindra & Mahindra rising 2.8% and 2%, respectively, on strong sales growth in June.

Fast-moving consumer goods index rose 2.1%. Nestle India and Hindustan Unilever rose 3.5% and 3%, respectively.

HSBC expects consumer staples firms to post steady June-quarter growth, helped by resilient demand and price hikes, but warned that El Niño and weak monsoon could hurt rural demand later in fiscal 2027.

KPIT Technologies tumbled 17% after warning on June-quarter and fiscal 2027 profit, flagging a 1% drop in first-quarter dollar revenue.

IT index fell 2%, declining for fourth straight session, as demand worries and concerns over a potential U.S. rate hikes weighed.