Mumbai, Sep 8 (IANS): Benchmark indices rose sharply erasing all losses in the last couple of days after crude oil prices in the international market fell sharply.

At 12.40 p.m., Sensex was trading 487.34 points or 0.83 per cent up at 59,516.25, and Nifty was up 126.85 points or 0.72 per cent at 17,751.25. On the Sensex, Mahindra & Mahindra, ICICI Bank, Axis Bank, Tech Mahindra, Bharti Airtel were major gainers.

"Oil prices settled sharply lower on Wednesday, slumping below levels seen prior to Russia's invasion of Ukraine as downbeat Chinese trade data fed investor worries about recession risks," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

On Wednesday, Brent crude oil price in the international market fell sharply lowest since before Russia invaded Ukraine on worries of a global economic recession and lower fuel demand.

Brent crude oil prices were trading at $88.80 a barrel on Thursday.

Oil's deep loss on Wednesday came despite several supportive market factors. Russian President Vladimir Putin said the country would not supply energy to any nations that backed a planned US-led price cap on the nation's crude. In addition, the Energy Information Administration raised its outlook for global oil demand, while also cutting the forecast for the US supply.

Global central banks are raising interest rates aggressively to fight inflation and could certainly impact global oil demand in coming months.

"We expect crude oil prices to remain negative in today's session. Crude oil is having support at $81.10-79.80 and resistance is at $84.20-85.80 in today's session. In INR terms crude oil has support at Rs 6,480-6,340 while resistance is at Rs 6,770-6,890," Kalantri added.