Indian shares advance on oil retreat; financials lead
Indian share benchmarks advanced as oil prices held near their lowest in more than two weeks on Wednesday, while lingering Middle East uncertainty kept a lid on gains. While US President Donald Trump warned on Tuesday that he could “annihilate” Iran, he also said his envoys had held productive talks with Iranian mediators to end their nearly seven-month-old war. That and Saudi Arabia’s…
Indian share benchmarks rose on Wednesday as oil prices hovered near their lowest level in over two weeks, despite ongoing Middle East tensions. US President Donald Trump threatened to "annihilate" Iran but reported productive talks with Iranian mediators to end their nearly seven-month conflict. Simultaneously, Saudi Arabia resumed oil supply via a crucial Red Sea pipeline, bringing Brent crude below $100 a barrel.
This development provided some relief to oil-dependent India and boosted investor sentiment in the domestic market. Sudeep Shah, head of technical and derivatives research at SBI Securities, noted that the prolonged decline in crude prices has rekindled risk appetite among traders. The Nifty 50 climbed 0.5% to 23,446.80, while the BSE Sensex gained 0.4% to 74,828.25.
Both indices were up 0.44% and 0.36%, respectively, ahead of the final trading session. Shah highlighted that the Nifty's support zone lies between 23,270 and 23,290, while resistance is expected in the range of 23,580 to 23,600. Fifteen of the 16 major sectors experienced gains. Small and mid-cap stocks notched up 0.9% and 0.7%, respectively.
Among heavyweight financials, Bajaj Finance led the charge with a 3.4% increase, propelled by UBS upgrading its rating and raising its price target on a more optimistic earnings outlook. Banks and state-owned lenders also rose, with UBS pointing to stable-to-improving asset quality across various retail loan categories based on CRIF Bureau's August early-delinquency data.
The metal index climbed 2.4%, reflecting gains in global metal prices due to supply worries and sustained demand, particularly from China. However, Nifty IT was the only sector to decline, pressured by demand and earnings concerns, even as AI-focused Asian technology markets continued to advance. Notable individual performers included Arvind Smartspaces, which surged 6.8% after securing over 5 billion rupees in bookings for a premium residential project in Bengaluru within 30 days of its launch.
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