Market Highlights: Sensex gains 500 pts, Nifty up 180 pts; Airtel, Kotak shine; Bank, Metal jump

Indian shares rebounded on Tuesday, in line with global stocks on easing U.S. rate worries, while investors kept tabs on the military conflict in the Middle East.

The NSE Nifty 50 index climbed 180 pts to close just below 19,700. The S&P BSE Sensex rose 560 pts to above 66,000, at 66,072. All major sectoral indexes logged gains.

High-weightage financials, banks, and metals rose while public sector banks rebounded from the previous session's loss. Pharma remained subdued in today's session and ended with marginal gains. Auto also gained more than a per cent. IT started the day with a drag but bounced back to end with gains.

Bharti Airtel, Kotak Bank, JSW Steel and Tata Motors topped the charts in today's rally. TCS and IndusInd Bank dropped marginally to end in the red.

Japan's Nikkei share average recorded its largest daily gain in nine months led by energy-related shares, as buoyant risk appetite spilled over from Wall Street and investors scooped up beaten-down stocks. The Nikkei closed 2.43% higher, posting its biggest daily gain since Jan. 18.

Chinese stocks declined as investors rushed to sell companies with exposure to the Middle East, while the Hong Kong market gained driven by dovish comments from U.S. Federal Reserve officials.

China's blue-chip CSI 300 Index dropped 0.75%, while the Shanghai Composite Index fell 0.70%. Hong Kong's Hang Seng Index rose 0.84%, and the Hang Seng China Enterprises Index climbed 0.90%.

European stocks rebounded sharply on Tuesday, as dovish comments from U.S. Federal Reserve policymakers and easing oil prices helped ease investor nerves after the conflict in the Middle East had sparked a rush to safe assets.

UK shares rebounded on Tuesday as a pullback in Treasury yields, following dovish comments from the U.S. Federal Reserve officials, eclipsed jitters on the Middle East conflict.

Shishir Baijal, Chairman & Managing Director, Knight Frank India on real estate demand boost sector: In the post-pandemic quarters, particularly following Q3 2021, a consistent and concurrent increase in demand has been observed across both the residential and commercial sectors. India's economy has demonstrated resilience in the post-pandemic era, establishing itself as a stable economic entity characterised by robust domestic business activity, contributing to sustained GDP growth.

Most listed players are concentrated in the residential sector which has seen an unprecedented growth in the recent quarters. The residential sector notably benefited from reduced interest rates and favorable governmental initiatives introduced during the pandemic aimed at promoting homeownership. Despite a rise in home loan rates, consumer inflation, and price escalations in recent quarters, the persistence of long-term economic stability and income security has ensured the continuity of momentum. It is worth noting, that the high-end segment (homes costing INR 10+ mn) of the housing market has experienced significant growth, resulting in a larger share of the premium housing segment within the overall home sales landscape.

Similarly, the office segment has experienced positive effects stemming from economic stability, as evidenced by the increasing prominence of India-facing businesses and domestic enterprises. Notably, Global Capabilities Centres (GCC) have made significant contributions to the demand for office spaces, further underscoring the strength and reliability of India's growth narrative.”

India's economic growth forecast for the current fiscal year has been raised to 6.3% from 6.1% earlier, the International Monetary Fund said in its October 2023 World Economic Outlook (WEO) report that was released on Tuesday.

The global lender expects retail inflation in the South Asian nation to rise to 5.5% in 2023/24 before easing to 4.6% in 2024/25.

"Growth in India is projected to remain strong, at 6.3% in both 2023 and 2024, with an upward revision of 0.2 percentage points for 2023, reflecting stronger-than-expected consumption during April-June," the IMF said. (Read More)

A group of banks that have been in talks to lend about $250 million each toward a syndicated loan of about $3.5 billion to refinance debt which the Adani Group took out to fund its purchase of Ambuja Cements Ltd. have received internal approval for the deal, according to people familiar with the matter.

The three banks are Barclays Plc, Deutsche Bank AG and Standard Chartered Plc, said the people, asking not to be identified when discussing a private matter. (Read More)

The World Bank has suggested closing all tax exemptions and bringing agriculture, retail, and real estate under a tax bracket that can fetch three per cent of GDP in the cash-strapped Pakistan’s kitty, media reports said on Tuesday.

“The people in two major areas in the provincial jurisdiction — real estate and agriculture — had most of the untaxed wealth, which should be taxed by the provincial governments to be able to improve services and reduce the financial burden on the centre, which was financing these services,” newspaper Dawn quoted WB’s Country Director Najy Benhassine and senior economist Tobias Haque as saying.

The lender has projected that if agriculture income and properties tax is enforced properly then it could fetch three per cent of GDP in the tax collection on an annual basis, equivalent to slightly over ₹3 trillion, the Dawn newspaper quoted Haque as saying. (PTI)

Alcoholic beverage makers in India are set to report revenue growth of 8-10% in the current fiscal, lower than the 20% rise witnessed in the previous fiscal, ratings firm Icra said on Tuesday.

The Indian liquor industry reported strong growth in FY23 after the pandemic-linked closures adversely impacted sales in the two preceding fiscals --FY2021 and FY2022. (Read More)

India is in a sweet spot globally given the growing rift between Western nations and China, eminent economist Kaushik Basu has said and expressed hope that the country will hold out on three pillars -- democracy, free media and secularism -- which made India special.

Basu, currently a professor of economics at Cornell University, said that these three pillars are particularly needed now with all the post-Covid economic and social uncertainties that the world is going through.

"Given the growing rift between Western nations and China, India is in a sweet spot, globally," Cornell University said in a statement quoting Basu. (PTI)

India's space economy has the potential to reach USD 44 billion by 2033 with about eight per cent of the global share. Presently, the country's share in the global space economy is 2 per cent, said a top government official on Tuesday.

IN-SPACe (Indian National Space Promotion and Authorisation Centre), the single-window autonomous agency under the Department of Space (DOS) today unveiled the decadal vision and strategy for Indian space economy.

Addressing mediapersons here, IN-SPACe Chairman Pawan Goenka said, "As we unveil the decadal vision for the Indian Space Economy, we emphasise that the future of the Indian space sector is a shared endeavour. Hence, our strategy fosters an era of collaboration between all stakeholders to accelerate growth." (PTI)

The world economy is losing momentum in the face of higher interest rates, the ongoing war in Ukraine and widening geopolitical rifts, the International Monetary Fund warned Tuesday.

The IMF said it expects global economic growth to slow to 2.9% in 2024 from an expected 3% this year. The forecast for next year is down a notch from the 3% it predicted back in July.

The deceleration comes at a time when the world has yet to fully mend from a devastating but short-lived COVID-19 recession in 2020. A series of shocks, including the pandemic and Russia’s invasion of Ukraine, has slashed worldwide economic output by about $3.7 trillion over the past three years compared with pre-COVID trends.

“We see a global economy that is limping along," IMF chief economist Pierre-Olivier Gourinchas told reporters ahead of the IMF and World Bank’s fall meetings this week in Marrakech, Morocco. (AP)

Credo Brands Marketing Ltd, the owner of the men's casual wear brand Mufti, and Ahmedabad-based jewellery manufacturer RBZ Jewellers Ltd have received approval from the Securities and Exchange Board of India (Sebi) to raise funds via their respective initial public offerings (IPOs).

Credo Brands' maiden public issue is entirely an offer for sale (OFS) of up to 19.63 million shares by promoters and other existing shareholders.

Promoters and promoter group members together hold over 67% stake in Credo Brands Marketing. (Read More)

UK shares rebounded on Tuesday as a pullback in Treasury yields, following dovish comments from the U.S. Federal Reserve officials, eclipsed jitters on the Middle East conflict.

The internationally focused FTSE 100 was up 0.9% at 0701 GMT and the more domestically oriented FTSE 250 gained 0.6%.

Precious metal miners added 0.8%, as gold prices climbed amid the ongoing market uncertainty due to a conflict between Israel and Palestinian Islamist group Hamas. (Reuters)

Nifty Realty index surged over 5% and recorded a new 10-year high on Tuesday's session. All ten of the Nifty Realty Index's constituents are currently trading higher, making it the top sectoral gainer on Tuesday. So far, this year Nifty Realty index has climbed 41% and in today's session Nifty Realty index recorded its highest level in last 15 years. According to analysts, the RBI decision to keep interest rates unchanged got a boosting support to rate-sensitive sectors like real-estate and auto. (Read More)

IT firm Wipro on Tuesday said it has 80 employees in Israel, all of whom are Israeli nationals and have been accounted for. The tech company has advised its employees there to work from home until further notice and is monitoring their safety.

“Wipro has about 80 employees in Israel, all of whom are Israeli nationals and have been accounted for," said the company in response to Mint’s queries.

Wipro’s comments come a day after executives in Tata Consultancy Services (TCS), India’s largest IT services firm said they are closely monitoring the safety of its employees in Israel amid the ongoing war between Israel and Hamas. (Read More)

Engineering and construction conglomerate Larsen & Toubro (L&T) on Tuesday said that it has bagged "significant" orders for its water and effluent treatment vertical.

The company did not provide value of the contracts but said the orders fall under "significant" category, which ranges between ₹1,000 crore and ₹2,500 crore, as per its classification of contracts.

The water and effluent treatment business "has secured an engineering, procurement and construction order from the Public Health Engineering Department, Rajasthan to construct a water supply project for 648 villages of the district of Chittorgarh from the Chambal River under the Jal Jeevan Mission (Package-I)", the company said in a statement. (PTI)

According to Wright Research, a smallcase manager, consumer sentiment will pick up this festive season as retailers are expecting at least 10-12% growth over the last year's sales. The company reports an expectation of discretionary spending in consumer, automotive, banking, realestate, e-commerce and many more sectors picking up in the coming months, and estimates 20% increase in employment during this festive season.

• Expects growth to be driven by Automotive, FMCG, E-Commerce, Manufacturing, Commodities, Travel & Hospitality sectors this festive season
• Estimates 20% increase in employment during the festive season
• E-commerce giants anticipate a 28% growth in sales during the festive month

Adani Ports & Special Economic Zone Ltd witnessed a recovery in its share price, surging by over 3% during Tuesday's trading session. This bounceback comes after the stock experienced a nearly 5% decline on the previous day due to concerns related to the conflict in Israel, where the company has a significant port presence.

At the start of the trading session on the BSE, Adani Ports' share price opened at an intraday low of ₹799.95 per share but later reached an intraday high of ₹817.

Analysts have pointed out that, even in a worst-case scenario, the impact of events in Israel is expected to have a limited effect on Adani Ports & Special Economic Zone. This assessment has contributed to the positive trend in Adani Ports' stock price. (Read More)

Indian retail inflation likely eased to 5.50% last month, within the Reserve Bank of India's (RBI) tolerance band, on moderating food price rises and government subsidies that offset a surge in the cost of crude oil, a Reuters poll found.

The RBI kept monetary policy unchanged on Oct. 6 for a fourth consecutive meeting and signalled interest rates would remain high until inflation was closer to 4%, the midpoint of the central bank's 2-6% target range.

Rises in food prices, which make up about half the consumer price index (CPI), continue to cool from recent peaks after the Indian government enacted a series of measures to boost supply. (Reuters)

Based on the statement released, key highlights for Q2 FY24 for Ajmera Realty:

• Sales Area stood at 1,20,787 sq. ft, up 51% YoY
• Sales Value stood at INR 252 crores, up 52% YoY
• The collection stood at INR 111 crores, up 8% YoY
• Acquired 3 projects with GDV of ~INR 800 crores and sales potential of ~4.4 lac sq. ft.

Redevelopment of 4 societies at Yogi Nagar, Borivali with sales potential of ~1.07 lacs sq. ft.

SRA redevelopment project at Bhandup, with initial phase development of ~1.7 lac sq. ft.

Entered into JDA through its SPV for a 69% stake at Electronic Phase 2, Bengaluru with a sales potential of ~1.62 lacs sq. ft.

Suzlon Energy share price was locked at 5% lower circuit for the second consecutive session on Tuesday after the stock was put on Direct stage IV “ASM framework" with effect from October 9. ASM stands for Additional Surveillance measures.

Suzlon Energy shares opened 4.4% lower at ₹26.46 apiece against the previous close of ₹27.69 apiece on the BSE. However, as selling intensified in the early deals, the stock fell to hit a 5% lower circuit limit of ₹26.31 apiece. (Read More)

Global natural gas supplies remain tight, even with recent reductions in demand, so especially frigid weather this heating season raises the threat of more price swings, the International Energy Agency said.

Europe’s storage sites are nearly full — well ahead of schedule — but “this is no guarantee of stable prices throughout the season,” the agency said in a market report Tuesday. “The risk of price volatility, particularly in the event of a cold winter, is cause for concern.”

The region remains extremely sensitive to supply changes after losing most of its pipeline gas deliveries from Russia last year, which pushed prices to record levels. Recent events — from strikes at liquefied natural gas facilities in Australia to the outbreak of war in the Middle East — have sparked a rally in the benchmark contract. (Bloomberg)

The Life Insurance Corporation of India (LIC), a major player in the insurance industry, has experienced a decline in its market share, which has dropped to approximately 58.50 percent for the year leading up to September 2023. This represents a decrease of 975 basis points (bps) from the 68.25 percent market share it held in September 2022, according to data from the Life Insurance Council.

However, there is a modest reason for optimism, as the month-on-month (MoM) market share for LIC saw an increase of 57.37 percent in September 2023 compared to August 2023. (Read More)

Gold prices traded higher in the morning trade in the domestic futures market, tracking positive global cues. Gold in international markets rose on uncertainty due to the Israel-Hamas war. Moreover, dovish remarks from top US Fed officials weighed on the dollar and bond yields and supported the yellow metal.

Gold is getting support from geopolitical concerns. As Reuters reported, "gold rose about 1.6 per cent on Monday, its biggest one-day jump in five months, as military clashes between Israel and Palestinian Islamist group Hamas boosted demand for safe-haven assets." (Read More)

Vishnusurya Projects and Infra Limited saw a relatively subdued debut on the NSE SME exchange. The company's shares were listed at ₹73 per share, which was 7.4% higher than the issue price of ₹68.

The IPO of Vishnusurya Projects had a price band of ₹68 per equity share with a face value of ₹10 each. The lot size for the IPO was 2000 equity shares, with multiples of 2000 equity shares thereafter. The subscription period for Vishnusurya Projects and Infra IPO began on Friday, September 29, and concluded on Thursday, October 5. (Read More)

Genus Power Infrastructure witnessed its share price surge by 5%, reaching the upper circuit limit during Tuesday's trading session. This significant increase followed the company's successful bid to secure an order worth ₹3,115.01 crore for smart prepaid meters. At the start of the trading session on the BSE, Genus Power's share price opened at ₹273.80 apiece.

The company's exchange filing confirmed that its wholly-owned subsidiary had been awarded two letters of awards, totaling ₹3,115.01 crore, for the appointment of Advanced Metering Infrastructure Service Providers (AMISPs). These awards encompass the design of an AMI system and the supply, installation, and commissioning of 34.79 lakh smart prepaid meters, system meters, including DT meters, and related energy accounting under a Design-Build-Finance-Own-Operate-Transfer (DBFOOT) framework. (Read More)

Prominent investor Ashish Kacholia has acquired 6,22,800 shares of Saakshi Medtech & Panels Ltd, a recently listed SME company, in a block deal. Kacholia made these purchases through open market transactions on October 9, at an average price of ₹167.01 per share, resulting in a total transaction value of ₹10.4 crore. Concurrently, Hem Finlease divested 6,20,400 shares of the same company at an average rate of ₹167 per share. (Read More)

Avdhut Bagkar, Derivatives & Technical Analyst, Stoxbox on strategy for TCS ahead of Q2 results: Tata Consultancy Services Ltd| Bullish|4,000

Following a new 52-week high, the stock has opened doors for the next upward rally. Stability over 3,600 mark shall endure further accumulation aimed to hit the 4,000-mark. Support for the optimistic sentiment exists at 3,480 level. The price action rising above the consolidation range of 3,550 to 3,000, survived between June 2022 to Sept 2023 is revealing a gradual breakout.

Despite witnessing writing in 3640 CE & 3620 CE, we expect 3,520 CE and 3,500 CE to gather support as option data showcases the bottoming situation. We intend to capitalize on the considerable implied volatility surrounding the results corner, staying the underlying outlook optimistic.

TCS is expected to release its Q2 results on October 11, 2023; we recommend taking a long position in 26 OCT 3,600 CE at 55, CMP: 85. The stop loss is set at 20 and the target is aimed at 150.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The uncertainty associated with the Israel- Hamas war continues. It can take a turn for the worse if Israel starts ground operations in Gaza. The possibility of easing of tensions also cannot be ruled out since Hamas will bargain with the captured Israeli hostages. Unlike economic and market trends, geopolitical developments cannot be predicted. This uncertainty will weigh on markets.

On the economic front, there are some positive developments. The decline in the dollar index to 105.95 and the US 10-year bond yield falling to 4.65 from the recent high of 4.88 are positive developments for equity markets. Even though FIIs continue to sell in India, the intensity of selling is coming down. More importantly. DIIs are increasing their purchases.

Calibrated buying in small quantities in quality stocks in banking, automobiles, IT, capital goods and real estate/construction would be a good strategy for long-term investors.

Chinese developer Country Garden Holdings Co. ramped up warnings that it’s set for its first-ever default and hired advisers, the strongest indications yet the company is headed for a restructuring that would be one of the nation’s biggest.

The builder “expects that it will not be able to meet all of its offshore payment obligations when due or within the relevant grace periods, including but not limited to those under the U.S. dollar notes issued by the company,” it said in a filing Tuesday. “Such non-payment may lead to relevant creditors of the Group demanding acceleration of payment of the relevant indebtedness owed to them or pursuing enforcement action.” (Bloomberg)

The Indian rupee is likely to open marginally higher on Tuesday after a pullback in U.S. Treasury yields fuelled a broad uptick in Asian peers.

Non-deliverable forwards (NDF) indicate the rupee will open at around 83.22-83.24 to the U.S. dollar compared with 83.2625 in the previous session. The currency is hovering just shy of its record low of 83.29.

Though NDFs indicated a positive opening for the rupee, it was "absolutely possible" that the local currency could see a new lifetime low, a forex trader at a large private sector bank said. (Reuters)

Plaza Wires IPO allotment status is nearing completion, with the allotment process commencing on Monday, October 9. Investors who have applied for the IPO can verify their share allotment status on the registrar's portal, Kfin Technologies Ltd, once the allotment process is finalized.

Investors can ascertain the quantity of shares allocated to them by referring to the basis of allotment, which will also be accessible in the IPO allotment status. For applicants who did not receive any shares, the company will initiate the refund process. Those who have been allotted shares will find them credited to their demat accounts. (Read More)

Mahindra Last Mile Mobility Ltd on Monday said it has received the first tranche of ₹300 crore out of the proposed ₹600 crore investment by International Finance Corporation at a valuation of ₹6,020 crore.

In March 2023, International Finance Corporation (IFC) had committed to invest ₹600 crore in one or more tranches in a new company housing the last mile mobility division of Mahindra Group.

Subsequently, Mahindra Last Mile Mobility Ltd (MLMML) was incorporated as a subsidiary of Mahindra & Mahindra Ltd and commenced commercial operations in September 2023 pursuant to closing of asset and business transfer agreements with M&M.

"MLMML has since completed other regulatory and procedural requirements and has received the first tranche of ₹300 crore from IFC," the company said in a statement. (PTI)

Oil steadied after its biggest jump in six months as Israel said its retaliation for attacks by militant group Hamas over the weekend had “only started,” increasing the prospect of fresh instability in the Middle East.

West Texas Intermediate traded near $86 a barrel after surging 4.3% on Monday, as markets reacted to fighting that started Saturday and reignited a conflict with broad repercussions across the region. Israel has announced its largest-ever mobilization of more than 300,000 army reservists as it attacked Gaza from the air and sea, with Prime Minister Benjamin Netanyahu vowing to “change the Middle East.” Hamas threatened to execute hostages.

The conflict has ratcheted up oil’s volatility, following sizable swings over the past month as economic concerns weighed on a rally underpinned by supply cuts by Saudi Arabia and Russia. (Bloomberg)

Maruti Suzuki announced plans to invest up to ₹1.25 trillion by 2030-31, aiming to develop 10-11 new models, including six electric vehicles (EVs), and double its annual production to 4 million units, with a focus on hybrid, flex fuel, and electric SUVs.

Adani Group issued a statement condemning what it calls a 'Malicious Campaign' by the UK-based Financial Times, alleging the newspaper is rehashing baseless allegations to harm the conglomerate's reputation.

Tata Steel's Issuer Default Rating (IDR) was upgraded to ‘BBB-’ from ‘BB+’ by Fitch Ratings, thanks to reduced risk from its UK operations.

Vedanta reported a tax penalty of ₹1.81 crore on its subsidiary Hindustan Zinc, with no significant financial impact expected.

Star Health and Allied Insurance received a ₹38.99 crore tax notice from the Directorate General of GST Intelligence.

Mahindra Last Mile Mobility Ltd secured a ₹300 crore investment from the International Finance Corporation at a valuation of ₹6,020 crore.

Glenmark Life Science announced an interim dividend of ₹22.50 per equity share for FY24.

Inox Green Energy Services plans to sell its 100% stake in Nani Virani Wind Energy Private Ltd, a 50 MW wind farm.

IDFC First Bank is selling office space in Mumbai to NSDL for ₹198 crore.

GR Infraprojects and Patel Engineering formalized a contract agreement with NHPC for the Dibang Power (Lot 4) project, valued at ₹3,637.12 crore, within the Dibang multipurpose project in Arunachal Pradesh, with an 86-month completion timeline. (Read More)

Vedanta Ltd on Monday said the tax authorities have imposed a penalty of ₹1.81 crore on its subsidiary Hindustan Zinc.

The order was received on Sunday, October 8, Vedanta Ltd informed the exchanges.

"The company has received an order from Assistant Commissioner, Div-A, Central GST Audit Circle, CGST, Udaipur imposing a penalty of Rs. 1,81,06,073/- under Section 74(9) of the CGST Act 2017 read with corresponding provisions of the SGST Act, 2017 and Section 20 of IGST Act, 2017 for the period July 2017 to March 2018," Vedanta Ltd said. (PTI)

Tata Steel received a boost in its Issuer Default Rating (IDR) from Fitch Ratings on Monday, with the rating being upgraded from 'BB+' to 'BBB-' as a result of the company's efforts to mitigate risks stemming from its UK operations. This upgrade was predicated on the improvement of Tata Steel Limited's standalone credit profile (SCP), which was raised from 'bb' to 'bb+', reflecting a decrease in uncertainty and financial risk associated with its UK operations. (Read More)

Maruti Suzuki India Ltd on Monday said it is looking to invest as much as ₹1.25 trillion by 2030-31 to develop 10-11 new models, including six electric vehicles (EVs), and double its annual production to 4 million units. In a presentation, the country’s largest carmaker said it plans to dial up its presence in new vehicle segments, including hybrid, flex fuel and electric, particularly in the sport utility vehicle (SUV) format.

The company said it expects EVs to make up 15-20% of its sales by 2030-31. “Another 25% could be hybrids, and the rest would use ethanol, CNG (compressed natural gas) and possibly CBG (compressed biogas)," it said. (Read More)

Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher recommends: 

1. Buy TVS Motor at ₹1,522 | Stop loss at ₹1,490 | Target: ₹1600

2. Buy Maharashtra Seamless at ₹620.5 | Stop loss at ₹608 | Target: ₹6503.

3. Buy Tata Coffee at ₹258 | Stop loss at ₹253 | Target 272 (Read More)

The Adani Group has issued a media statement strongly denouncing what it describes as a 'Malicious Campaign' by the UK-based newspaper, Financial Times. In the statement, the conglomerate accuses the media outlet of revisiting outdated and unfounded allegations with the intent of damaging the Adani Group's global reputation. The media release asserts that the Financial Times, along with its associates, is making a "renewed attempt to recycle old and groundless accusations in an effort to tarnish the reputation and stature of the Adani Group." (Read More)

Oil prices climbed Monday on worries about violence in the Middle East. The stock market was less fearful, though, and flipped from early losses to gains.

The S&P 500 rose 27.16, or 0.6%, following some potentially encouraging news on interest rates, which have been dragging Wall Street mainly lower since the summer.

The Dow Jones Industrial Average gained 197.07 points, or 0.6%, to 33,604.65, and the Nasdaq composite climbed 52.90, or 0.4%, to 13,484.24.

Stocks perked higher after two officials at the Federal Reserve suggested they may not need to raise interest rates again at their next meeting Nov. 1, because a jump in longer-term bond yields may be helping to cool inflation without further market-rattling hikes by the Fed.

That gave stocks some oxygen and helped them erase modest losses from the morning. The S&P 500 had sagged by as much as 0.6% in its first trading after Hamas launched a surprise attack against Israel, which then formally declared war.

The area under conflict is not home to major oil production, but fears that the fighting could spill into the politics around the crude market sent a barrel of U.S. oil up $3.59 to $86.38. Brent crude, the international standard, rose $3.57 to $88.15 per barrel. (AP)