Shares gain on finance, consumer boost after overnight oil selloff

New Delhi: Indian shares posted their best session in two weeks on Wednesday as finance and consumer goods stocks gained, with an overnight slide in crude prices soothing some inflation worries. The NSE Nifty 50 index rose 1.13% to 15,989.8, while the S&P BSE Sensex climbed 1.16% to 53,750.95, with both indexes marking their best session since June 21.

Crude oil prices tumbled 9% on Tuesday, hit by worries of demand destruction, before clawing back some losses on Wednesday. Lower crude prices benefit India, the world`s third-largest importer of oil.

Inflation and interest rate hikes aimed at combating surging prices have weighed on the Nifty and the Sensex in the first half of 2022, with the indexes down nearly 8% so far this year. 

The Nifty FMCG index was the best performing subindex on Wednesday, up 2.64%, helped in part by tumbling palm oil prices and as Britannia Industries surged 4.8% in its best session since July 2020.

The Nifty Financial Services index climbed 1.6%, with non-bank lender Bajaj Finance advancing 4.5% after reporting strong loan additions in the June-quarter.

Shares of domestic explorers Oil & Natural Gas Corp and Oil India slid 5.1% and 8.6%, respectively, following a slump in oil prices. Oil producers have been under pressure since last week following the government`s move to impose a windfall tax.

Spicejet shares swung in volatile trade after the aviation regulator issued a notice to the airline over safety lapses. The stock closed 2.3% higher after falling up to 4.2% earlier in the session.