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INDIA STOCKS-Indian shares extend gains as lower crude oil, foreign inflows boost sentiment

By Reuters News
FILE PHOTO: People walk outside the National Stock Exchange (NSE) in Mumbai, India, October 22, 2024. REUTERS/Francis Mascarenhas/File Photo

By Vivek Kumar M

Nov 12 (Reuters) - Indian shares inched higher in early trade on Thursday on optimism over lower crude oil prices and foreign fund inflows, while recent gains kept the upside capped.

The Nifty 50 .NSEI rose 0.27% to 25,324.25 and the Sensex .BSESN edged 0.33% higher at 82,150.57, as of 9:32 a.m. IST (0402 GMT).

Eleven of the 16 major sectors traded higher. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 gained 1.3% and 0.8%, respectively.

Brent crude futures fell more than 1% to $91.8 per barrel on hopes for progress in peace talks over the Middle East and the Russia-Ukraine wars. O/R

Foreign portfolio investors bought 125.63 billion rupees ($1.34 billion) worth of Indian shares on Wednesday, provisional data showed. They have net bought $6.43 billion of shares in November, already their biggest monthly purchase since September 2024.

The robust inflows have pushed the Nifty 50 and Sensex .BSESN indexes up 9.6% and 10%, respectively, so far in November.

The rally marks a reversal for Indian equities, which have lagged their emerging-market peers over the past two years due to elevated oil prices and limited exposure to the global AI-driven market rally.

"Despite (Wednesday's) positive close, rejection from higher levels indicates some near-term profit booking," said Hitesh Tailor, technical research analyst at Choice Broking.

The benchmark indexes had closed nearly 1% higher on Wednesday, after rising as much as 1.7% intraday.

However, the overall market structure remains positive, backed by strong FPI participation and continued strength in banking stocks, Tailor added.

Heavyweight financials .NIFTYFIN rose 1.3% on Thursday, with HDFC Bank HDBK.NS and ICICI Bank ICBK.NS adding 0.5% and 1.1%, respectively.

Non-bank lender Bajaj Finance BJFN.NS rose 2.4% after announcing a share sale of over $1 billion to institutional investors.

Life Insurance Corporation of India LIFI.NS and Meesho MEES.NS rose nearly 2%, after they were among four stocks added to the MSCI Global Standard index, while ICICI Prudential Life Insurance ICIR.NS jumped 3.6% after it avoided exclusion against expectations.

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