Indian shares rise led by autos; Mideast caution caps gains

Indian shares edged higher on Wednesday, led by gains in auto stocks as June sales data trickled in, but gains were capped as stalled U.S.-Iran talks clouded prospects for a lasting peace between the two countries.

The benchmark Nifty 50 rose 0.56% to 23,995 and the BSE Sensex gained 0.54% to 76,897.91, as of 10:32 a.m. IST.

The Nifty auto index advanced 1.2%, with Mahindra and Mahindra up 3% after reporting a 37% year-on-year rise in June sales.

Meanwhile, Brent crude futures were up on the day, hovering around $73 per barrel as peace talks between the U.S. and Iran hit fresh hurdles, but prices remained sharply below the April peak of $126.14.

Iran said on Tuesday it would not meet senior U.S. envoys who travelled to the region following an outbreak of hostilities.

“The ongoing decline in crude prices and a strengthening rupee have helped cushion the overall market sentiment and markets are likely to consolidate further in the near term,” said Ajit Mishra, senior vice president of research at Religare Broking.

Twelve of the 16 major sectors advanced.

The broader small-caps and mid-caps rose 0.4% and 0.3%, respectively.

Fast-moving consumer goods index rose 1.5%. Nestle India and Hindustan Unilever rose 2.7% and 2%, respectively, while Dabur gained 2.3%.

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

India is likely to see below-average monsoon rainfall in July, after logging its fifth-driest June since records began in 1901, the country’s weather department said on Tuesday, raising concerns over farm output and economic growth.

Among individual stocks, KPIT Technologies tumbled 15.2% after issuing a profit warning for June quarter and the rest of fiscal 2027, flagging a 1% decline in dollar revenue in the first quarter.