The Nifty Stock Market surged by over 17,630 points and the Sensex rose to 300 levels.

The Sensex and Nifty made strong gains in early morning trade on Wednesday as oil and gas explorers rallied on supply concerns, while a red-hot inflation reading for March fuelled expectations for an interest rate hike in June.

India’s retail inflation accelerated to near 7 per cent year-on-year in March, its highest in 17 months and above the upper limit of the central bank’s tolerance band for a third straight month.

The NSE Nifty 50 index was up 0.57 per centor 100.30 points at 17,630.60, while the S&P BSE Sensex 0.53 per cent or 313.25 points to 58,889.62.

Top explorer Oil & Natural Gas Corp, Oil India and GAIL India were top gainers, rising 1 per cent to 3 per cent. Surging demand for coal also lifted top miner Coal India by 1.6 per cent.

Oil prices climbed on worries that sliding output in sanctions-hit Russia, the world’s second-biggest oil exporter, will tighten supply after Moscow said peace talks to resolve its invasion of Ukraine had come to a dead end.

Meanwhile, Asian shares firmed, boosted by US inflation figures that fared better than markets’ worst expectations – and caused US yields to pause their march higher.