Indian shares gain as oil slides on Strait of Hormuz reopening hopes

Indian equities rose on Wednesday in line with global peers as crude prices slid amid expectations that the Strait of Hormuz might reopen. According to Business Recorder, the Nifty 50 advanced 0.17% to 24,374.50, while the BSE Sensex gained 0.41% to 77,979.32 in the early session at 9:49 a.m. IST. Gains came in 12 of the 16 major sectors, with banks leading the advance.

Brent crude dropped to $86.3 per barrel once Iran and Oman discussed a shared temporary route through the waterway and plans to clear it of mines. Separately, Reuters, citing two sources close to the situation, said the US is bringing staff back to some Middle East diplomatic posts that had been emptied or reduced during the conflict with Iran. Choice Broking analyst Hitesh Tailor said lower oil prices had strengthened the outside environment for domestic shares.

State-owned lenders gained 1.5%, and Bernstein analysts said Indian banks are in their best condition in years, citing lending growth, margins and asset quality. BPCL, HPCL and Indian Oil each rose about 1.5% on lower crude costs. Cyient climbed 5.2% after its analyst day, which J.P. Morgan described as centred on predictable and profitable growth, while Federal Bank eased 0.5% and Jana Small Finance Bank slid 3.8% after a report that Federal Bank could secure control of Jana.