Indian stocks gain as investors weigh oil slump amid risks

Bloomberg

Indian stocks advanced in a volatile session after the nation’s benchmark capped its steepest two-day slide in more than 11 years.
Investors weighing an oil slump against economic risks fuelled by the coronavirus outbreak sent the S&P BSE Sensex Index up 0.2% to 35,697.4 at the close in Mumbai, reversing an earlier loss of as much as 1.1%. The NSE Nifty 50 Index added 0.1%.
A measure of volatility expectations spiked for a third day after ending at its highest level since May 2014 on Monday, when the Sensex capped its worst two-day drop since January 2009 and trading volume soared. The Nifty has sunk 14% from a record high in January.
Stocks benefiting from cheap oil dominated Wednesday’s gains after prices plunged following
the breakdown of the OPEC+ group. About 60% of India’s crude imports were sourced from the Middle East last year.
“The lower the oil price, the better it is for India,” said Umesh Mehta, head of research at Samco Securities Ltd in Mumbai. “There’s a loss of confidence because of lower share prices that will play out on immediate sentiment, but the panic bottom may be behind us.”
Six of the 19 sector indexes compiled by BSE Ltd advanced, led by a gauge of energy companies.
Reliance Industries Ltd gained 3.6%, and contributed the most to the Sensex’s advance. Infosys Ltd was the biggest drag, dropping 2.7%.