BENGALURU: Indian shares surged more than 2% on Thursday, as global markets rebounded amid a brief drop in oil prices, with investor focus on election results in the key state of Uttar Pradesh where Prime Minister Narendra Modi’s party is set to retain control.

The blue-chip NSE Nifty 50 index was up 2.41% at 16,738.95, as of 0501 GMT, with most of its major sub-indexes in the positive territory. The S&P BSE Sensex surged 2.54% to 56,034.13.

The Bharatiya Janata Party is expected to keep control of India’s most populous state with a big majority, as officials begin the count in a state assembly vote that will offer clues to the national mood before the next general election, due by 2024.

“Global sentiments are helping us and there is some calmness with the cool-off in commodities and oil prices. I think things are settling down a bit and markets are trying to find their equilibrium,” said Saurabh Jain, assistant vice president at SMC Securities.

The Nifty’s bank index, financial services index and the auto index were among top gainers, rising 4% each. Tata Motors was among the top boosts to the Nifty 50, climbing more than 6%.

Oil prices fell the most in nearly two years on Wednesday as the market contemplated whether major producers would boost supply into a market roiled by supply disruptions due to sanctions on Russia. Prices were last up 3.18% at $114.67 a barrel.

India imports more than two-thirds of its oil needs, and the surge in crude threatens to push up the country’s trade and current account deficit while also hurting the rupee and fuelling imported inflation.

Nifty’s energy index was up 1.79%.

Broader Asian markets surged, tracking overnight gains in Wall Street as planned diplomatic talks between Russia and Ukraine buoyed sentiment.