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Indian Shares Rebounded on a Slide in Oil Prices Due to Demand Concerns in China

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Indian Shares Rebounded on a Slide in Oil Prices Due to Demand Concerns in China

(CTN News) – In the last hour of trading on Thursday, Indian shares rose as oil prices fell owing to worries about Chinese demand.

At the same time, local market volatility was strong due to the December derivatives series’ expiry.

The S&P BSE Sensex (.BSESN) increased 0.37% to 61,133.88, while the Nifty 50 index (.NSEI) finished 0.38% higher at 18,191. Over 0.7% of the benchmarks have dropped throughout the session.

Oil and gas stocks and metals rose over 1%, while most of the main sectoral indices recovered losses. Financials, a sector heavyweight (.NIFTYFIN), increased by more than 0.5%.

33 of the 50 companies that make up the Nifty 50 saw gains, including over 1.5% gains by Bharti Airtel (BRTI.NS), State Bank of India (SBI.NS), Eicher Motors (EICH.NS), Tata Steel (TISC.NS), and Axis Bank (AXBK.NS).

The local market turned around after oil prices dropped by more than 2% due to pressure from worries about China’s demand.

According to Neeraj Dewan, director of Quantum Securities, the drop in oil prices may help the local market outperform its international counterparts.

Since crude accounts for most of India’s import expenditure, the price decline is advantageous for oil-importing nations like that nation.

As the December derivatives series, the last one of 2022, concluded today, traders settled their futures and options (F&O) contracts.

According to Shrikant Chouhan, head of equities research (retail) at Kotak Securities, “Investors covered their (short) positions on the final day of the December monthly expiration, fueling a rise in metals, banking stocks, and oil and gas shares.”

Analysts anticipate that domestic market volumes will remain low until the next week, with the December-quarter results season serving as the next significant catalyst.

$1 is equal to 82.7360 Indian rupees.

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