Indian shares gain as oil slides on Strait of Hormuz reopening hopes
- The Nifty 50 added 0.17% to 24,374.50 and the BSE Sensex gained 0.41% to 77,979.32
Indian shares rose on Wednesday, tracking global equities, as oil prices fell on hopes the Strait of Hormuz could reopen after Iran resumed talks with Oman on managing the strategic waterway.
The Nifty 50 added 0.17% to 24,374.50 and the BSE Sensex gained 0.41% to 77,979.32, as of 9:49 a.m. IST.
Twelve of the 16 major sectors advanced.
The broader small-caps and mid-caps added about 0.4% and 0.3%, respectively.
Asian markets rose as Brent crude fell to $86.3 a barrel after Iran and Oman said they discussed a joint temporary navigational corridor through the Strait and agreed to clear it of mines.
Meanwhile, the US is beginning to send personnel back to some diplomatic missions in the Middle East that were evacuated or downsized amid the conflict with Iran, two people familiar with the matter told Reuters.
“Easing crude prices have improved the external backdrop for Indian equities and hopes of smoother Strait of Hormuz shipping have supported global risk sentiment,” said Hitesh Tailor, technical research analyst at Choice Broking.
State-owned lenders rose 1.5%. Banks, private banks and financials added 0.8% each, leading the benchmark gains.
India’s banks remain in their strongest shape in years, with solid loan growth, resilient margins and benign asset quality, analysts at Bernstein said after market hours on Tuesday, adding “public lenders outperformed private peers on profitability, driven by stronger interest income growth and margins.”
Among stocks, oil marketing companies BPCL, HPCL and Indian Oil rose about 1.5% each, aided by lower crude prices.
Cyient jumped 5.2% after the company’s analyst day, which J.P. Morgan said “focussed on driving predictable and profitable growth.”
Federal Bank fell 0.5% and Jana Small Finance Bank dropped 3.8%, extending losses after a report that Federal Bank may acquire a controlling stake in Jana.
Comments