BENGALURU — Indian shares traded higher on Monday on gains in metals, while investors waited for the outcome of an OPEC+ meeting later in the day for the direction of oil prices.
The NSE Nifty 50 index was up 0.62% at 17,647.70 as of 0452 GMT, and the S&P BSE Sensex rose 0.67% to 59,195.66.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, may decide to keep current output levels or even cut production to bolster prices, despite supplies remaining tight.
Crude below $95 a barrel and positive to neutral fund inflows from foreign investors are favorable for domestic equities, said Neeraj Dewan, director at Quantum Securities.
India, the world’s third largest importer of oil, benefits from a fall in prices as it brings down imported inflation.
Foreign investors bought about $245 million worth of Indian equities this month through Friday, Refinitiv data showed, after pouring $6.44 billion last month to mark their biggest monthly net buying since December 2020.
“With expectations of monetary tightening by central banks this month, we can’t expect this rally to sustain. It is more a wait-and-watch situation as far as our market is concerned,” Dewan added.
Most of the major Nifty sub-indexes traded in positive territory, with the metal index up 1.8% to be among the top performers.
Aluminum producer Hindalco Industries and JSW Steel were the top gainers on the Nifty 50 index, advancing 2.5% and 1.9%, respectively.
Shares of China’s Ant Group-backed digital payments firm Paytm dropped as much as 6.4% to hit an over one-month low.
Federal financial crime-fighting agency said on Saturday it was searching the premises of online payment companies, including Paytm, as part of an investigation of Chinese-controlled firms.
(Reporting by Rama Venkat in Bengaluru and additional reporting by Gaurav Dogra; Editing by Dhanya Ann Thoppil and Sriraj Kalluvila)