Indian shares extend rally as oil eases; IT, auto lead gains

Indian shares extended their recovery to a third consecutive sessionon Wednesday, led by a rebound in information technology stocks and supported by broader gains across Asia as oil prices eased slightly.

The Nifty 50 was up 0.45% at 23,686, while the BSE Sensex gained 0.45% to 76,415.29, as of 10:17 a.m. IST.

Twelve of the 16 major sectors climbed. The small-caps and mid-caps rose 1.3% each.

The Nifty 50 and the BSE Sensex have climbed about 2.5% each so far this week, though they remain roughly 6% lower for the month as investors navigate an unprecedented surge in crude oil prices sparked by the U.S.-Israeli war on Iran last month and its impact on energy markets.

Oil prices, however, eased to $101 per barrel on Wednesday after the Iraqi government and Kurdish authorities reached a deal to resume oil exports via Turkey’s Ceyhan port.

“The market is rising in anticipation that there won’t be further escalation in the Middle East after U.S. allies refused to send navies to Strait of Hormuz,” said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.

“But the situation remains fluid and any uptick in crude oil prices towards $120-$130 per barrel could trigger a fresh round of selling,” Agrawal said.

IT stocks gained 3.7% after brokerage firm CLSA brushed off disruption concerns linked to the latest AI tools from Anthropic and OpenAI.

CLSA said there was no evidence of increased deflation in renewal contracts for Indian software firms, and reiterated its positive view on the technology sector.

The IT index remained poised to snap a six-day losing streak, during which it lost 4.6%.

The IT sector, which primarily generates its revenue from the United States, is also in focus ahead of a widely expected rate pause by the U.S. Federal Reserve later in the day.

Among other sectors, auto stocks climbed 1.7%, extending their climb to a third consecutive session.