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 per cent at 17,730.65, and the S&P BSE Sensex climbed 0.37 per cent 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 per cent 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 directly impacts inflation.

Asian shares rose on Thursday, hoping interest rate hikes slow in the coming months.

In domestic trading, the Nifty's metal index climbed 2.7 per cent to hit a one-month high. JSW Steel Ltd, Hindalco Industries Ltd, and Tata Steel Ltd led gains on the Nifty 50 index, rising between 3 and 4 per cent.

Dabur India Ltd rose as much as 3 per cent to hit a three-week high after the consumer goods maker said it would buy a 51 per cent stake in Badshah Masala to enter into the spices and seasoning segment.