Energy stocks lift Indian shares higher

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.

The NSE Nifty 50 index rose 0.27% to 17,868.70, while the S&P BSE Sensex was up 0.23% at 59,885.39 by 0400 GMT.

Nifty’s energy sub-index rose 1.53% to advance the most among major sub-indexes. Indian oil and gas explorer Oil and Natural Gas Corp, 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 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.

Meanwhile, ratings agency Moody’s Investors Service upgraded its outlook on India to stable from negative on Tuesday.

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