By Rama Venkat
BENGALURU (Reuters) -Indian shares extended gains on Wednesday, supported by a rally in information technology stocks and as airlines rose after the government lifted pandemic-related restrictions on international flights.
The blue-chip NSE Nifty 50 index rose 0.77% to 16,137.55, as of 0505 GMT, and the S&P BSE Sensex climbed 0.89% to 53,900.81.
As of last close, the Nifty 50 and the Sensex had fallen 1.44% and 2.03%, respectively, since Russia’s invasion of Ukraine began on Feb. 24.
“At present, we are seeing a rebound or a relief rally after a sharp decline in indexes, and as long as the Nifty 50 is trading below the 16,400 zone, it is a sell-on-rise market,” said Ajit Mishra, vice president of research at Religare Broking.
The overall trend, however, is still negative due to global cues including higher oil prices, Mishra said.
Airline operators InterGlobe Aviation and SpiceJet jumped 7.4% and 5%, respectively, after the government said on Tuesday it would allow scheduled commercial flight operations to international destinations from March 27.
The Nifty IT index gained more than 1%, hitting its highest since early February and extending gains fuelled by a weaker rupee. Tata Consultancy Services and Infosys rose 1% and 2%, respectively.
The rupee fell to a record low of 76.97 against the dollar on Monday, as a sharp rise in global crude oil prices stirred concerns about domestic inflation. It was at 76.8175, as of 0511 GMT on Wednesday.
The Nifty auto index, the energy index and the financial services index also advanced, climbing between 0.2% and 0.4%.
Broader Asian stocks struggled for footing as investors assessed the impact of a worsening conflict in Ukraine and a U.S. ban on Russian oil. [MKTS/GLOB]
Oil prices jumped after U.S. President Joe Biden on Tuesday imposed an immediate ban on Russian oil and other energy imports in retaliation for the invasion of Ukraine.
(Reporting by Rama Venkat in Bengaluru; Editing by Anil D’Silva)
