BENGALURU: Financials and automakers lifted India's blue-chip stock indexes on Tuesday, tracking an overnight tech-led rally on Wall Street, as lower oil prices and prospects of Russia-Ukraine peace talks underpinned investor sentiment.
The NSE Nifty 50 index was up 0.46% at 17,300.95, as of 0435 GMT, while the S&P BSE Sensex rose 0.44% to 57,848.17.
Brent crude futures dipped as low as $109.97 per barrel on Tuesday with Ukraine and Russia set to meet in Istanbul for their first peace talks after more than two weeks, while coronavirus curbs in Shanghai sparked fears of a drop in fuel demand in China.
Equity markets in India, the world's third-biggest importer and consumer of oil, had slid nearly 15% from the year's high after Russia's invasion of Ukraine drove up oil prices sharply. The Nifty and Sensex have now recouped most losses for 2022.
"There is a good possibility of the 17,000-17,500 Nifty range getting broken on the upside with a surge in Bank Nifty.
Q4 financials results can provide the ammunition for this breakout," V K Vijayakumar, chief investment strategist at Geojit Financial Services, said in a note.
While stability in global markets, softening crude prices and chances of a ceasefire in Ukraine could set the stage for the breakout, stubborn U.S. inflation and an increasingly hawkish Federal Reserve were major headwinds for equity markets globally, Vijayakumar said, adding that high volatility should be expected.
The Nifty Financial Services index rose as much as 0.95%, lifted by a 2.2% jump in heavyweight mortgage lender HDFC Ltd.
India's largest carmaker Maruti Suzuki climbed 1.2% and Tata Motors advanced 1.5%, boosting the Nifty Auto index by 1%.
Shares of edible oil maker Ruchi Soya Industries surged as much as 20% after India's market regulator gave investors an option to withdraw their applications from the company's follow-on public offering after messages were circulated advertising a discount to the offering.
The stock had fallen more than 9% in the bidding period over the last three sessions.
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