Indian shares snap losing run on oil slide, earnings optimism

Indian shares rose on Monday after five consecutive sessions of declines as a sharp fall in oil prices brought relief to the markets after the United States and Iran paused strikes over the weekend.

The benchmark Nifty 50 rose 0.96% to 23,995.95, while the BSE Sensex added 1.02% to 76,835.78. They had lost 2.3% and 2.7%, respectively, in the last five sessions.

All 16 major sectors advanced. The broader small-caps and mid-caps added 1.3% and 1.1%, respectively.

Food and beverages firm Tata Consumer and state-owned power generator NTPC gained 1.8% and 1%, respectively. IDFC First Bank and AU Small Finance Bank jumped 5.1% and 4.8%, on robust quarterly results.

IT index rose 2.3%, led by a 3.7% gain in Infosys after Jefferies upgraded the sector to “neutral” from “underweight” and included Infosys in its model portfolio.

Global markets received some relief as Brent crude fell 9.3% to $88 a barrel after Iran said on Sunday that it would halt its attacks as long as the United States did the same.

“Market sentiment has improved meaningfully over the weekend after the U.S. and Iran paused military action, easing fears of an immediate supply disruption,” said Rajesh Palviya, head of research at Axis Direct.

“The sharp drop in crude is offering a significant tailwind for India through lower inflation expectations, an improved current account outlook and reduced pressure on the rupee, lifting risk appetite,” Palviya said.

The rupee hit a two-week high on Monday, aided by lower oil prices, central bank policy measures that have effectively restored foreign investor flows.

Oil marketing companies BPCL, HPCL and Indian Oil rose by 1.9%–3.8%, while IndiGo, paint makers Asian Paints and Kansai Nerolac and tyre makers JK Tyre and CEAT rose between 1.2% and 5.6%.

SBI Card climbed 4.2% after postinga higher quarterly profit.