Indian stocks cut gains as oil prices weigh

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BENGALURU — Indian stocks shed some gains on Thursday as a rise in oil prices weighed, while strength in metals stocks and other Asian stocks bolstered sentiment on expectations that major central banks could become less aggressive in rate hikes.

The NSE Nifty 50 index rose 0.42% to 17,730.65 at 0503 GMT, and the S&P BSE Sensex climbed 0.37% to 59,765.46.

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« Bond yields in the US and the dollar index are falling a bit on hopes of less aggressive rate hikes from the Fed, which is helping metal stocks on expectations for improvement demand for commodities, » said Neeraj Dewan, head of Quantum Securities.

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“We are near the upper end of the 16,800-17,800 range on the Nifty, but there is some resistance as crude has risen slightly,” Dewan said.

Oil prices rose at the start of Asian trading on Thursday after jumping more than 3% in the previous session, driven by record exports of U.S. crude.

India is the world’s third largest oil importer and consumer, and a rise in crude prices has a direct impact on inflation.

Asian stocks rose on Thursday on hopes that the pace of interest rate hikes will slow in the coming months.

In domestic trade, the Nifty’s metals index climbed 2.7% to hit a one-month high. JSW Steel Ltd, Hindalco Industries Ltd and Tata Steel Ltd led the gains on the Nifty 50 index, climbing between 3% and 4%.

Dabur India Ltd rose 3% to a three-week high after the consumer goods maker said it would buy a 51% stake in Badshah Masala to enter the spices and seasonings segment. (Reporting by Rama Venkat in Bengaluru; Editing by Janane Venkatraman)