Indian shares advance on oil retreat; financials lead

Business Recorder reported that Indian share benchmarks were trading higher on Wednesday as oil prices hovered near their lowest level in over two weeks. The Nifty 50 rose 0.5 per cent to 23,446.80, while the BSE Sensex added 0.4 per cent to 74,828.25. Fifteen of the 16 major sectors gained, although lingering Middle East uncertainty restrained the rally.

Brent crude stayed below $100 a barrel after Trump said envoys had engaged in constructive discussions with Iranian mediators, even as he threatened to completely destroy Iran. Saudi Arabia also restored supply through a key Red Sea pipeline. The easing in crude was welcomed by oil-importing India, and SBI Securities' Sudeep Shah said a lasting fall in crude had boosted traders' appetite for risk.

Financial stocks rose 0.6 per cent, with Bajaj Finance up 3.4 per cent after UBS upgraded its rating on an improved earnings outlook. Bank and state-owned lender shares also climbed, after UBS cited stable-to-improving asset quality in CRIF Bureau data for August. The metal index gained 2.4 per cent, while Nifty IT was the only sector to fall.