BENGALURU, Oct 6 (Reuters) – Indian shares extended gains to a third session early on Wednesday, with energy stocks leading a broad-based advance, and Oil and Natural Gas Corp surged as oil prices peaked to multi-year highs.
Nifty’s energy sub-index (.NIFTYENR) rose 1.53% to advance the most among major sub-indexes. Indian oil and gas explorer Oil and Natural Gas Corp (ONGC.NS), which rose 10% on Tuesday, was up nearly 5% early on Wednesday.
U.S. oil prices rose for a fifth day on Wednesday to their highest since 2014. While sky-high prices stoke inflationary worries in the economy, expensive crude tends to benefit companies like ONGC.
Shares of Coal India (COAL.NS) rose nearly 2% after the government said on Tuesday Indian coal mines that produce coal solely for their own use will now be allowed to sell 50% of their annual output in the open market, in a bid to ease pressure on power plants. read more
Meanwhile, ratings agency Moody’s Investors Service upgraded its outlook on India to stable from negative on Tuesday. read more
Reporting by Chandini Monnappa in Bengaluru; Editing by Krishna Chandra Eluri
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