(Reuters) - Indian shares shed some gains on Thursday, as an increase in oil prices weighed, while strength in metal stocks and other Asian equities helped the sentiment on expectations that major central banks may get less aggressive on rate hikes.
The NSE Nifty 50 index was up 0.42% at 17,730.65 as of 0503 GMT, and the S&P BSE Sensex climbed 0.37% to 59,765.46.
"Bond yields in U.S. and dollar index coming down a bit on hopes of less aggressive rate hikes by the Fed is what is helping the metal stocks on expectations that demand for the commodities will improve," said Neeraj Dewan, director at Quantum Securities.
"We are close to the upper end of the 16,800 - 17,800 range on the Nifty but there is some resistance as crude has inched up," Dewan said.
Oil prices rose in early Asian trade on Thursday after surging more than 3% in the previous session, driven by record U.S. crude exports.
India is the world's third-largest importer and consumer of oil, and a rise in crude prices have a direct impact on inflation.
Asian shares rose on Thursday on hopes that the pace of interest rate hikes slows in the coming months.
In domestic trading, the Nifty's metal index, climbed as much 2.7% to hit a one-month high. JSW Steel Ltd , Hindalco Industries Ltd, and Tata Steel Ltd led gains on the Nifty 50 index, climbing between 3% and 4%.
Dabur India Ltd rose as much as 3% to hit a three-week high after the consumer goods maker said it would buy a 51% stake in Badshah Masala to enter into the spices and seasoning segment.