March 16 (Reuters) – India’s benchmark indexes rose in early trade on Monday, rebounding after their worst week in years, though investors remained wary of crude oil staying above $100 a barrel amid the prolonged Middle East conflict.
The Nifty 50 (.NSEI), rose 0.2% to 23,189, while the BSE Sensex (.BSESN), opens new tab added 0.18% to 74,697.6, as of 10:08 a.m. IST.
Nine of the 16 major sectors traded higher. The mid-cap (.NIFMDCP100), opens new tab and small-cap (.NIFSMCP100), opens new tab fell 0.2% and 0.7%, respectively.
The benchmark indexes have shed nearly 8% this month due to the U.S.-Israeli war on Iran, which led to closure of Strait of Hormuz – a vital artery for global oil and gas shipments.
Brent crude hovered around $104 a barrel, while U.S. President Donald Trump urged other countries to help secure the Strait of Hormuz.
Higher oil prices are negative for India, the world’s third-largest crude importer, as they could widen the fiscal deficit, stoke inflation and weigh on growth.
“With the uncertainty surrounding the war continuing, markets are in uncharted territory,” said V.K. Vijayakumar, chief investment strategist at Geojit Investments.
Vijayakumar said foreign portfolio investors are likely to keep selling Indian equities if markets rally.
Foreign portfolio investors have sold Indian shares worth more than $5.7 billion in March since the war began, marking the biggest monthly outflows since January 2025.
Brokerage Citi lowered its year-end target for the benchmark Nifty 50 index to 27,000 from 28,500 points, citing the impact of higher crude prices on earnings and the economy.
Monday’s gains in Indian markets mirrored Asian peers (.MIAPJ0000PUS), opens new tab, which rose 0.4%. GLOB/MKTS
Heavyweight financials (.NIFTYFIN), opens new tab rose 0.6%, while consumer stocks (.NIFTYFMCG), opens new tab gained 0.7% to lead gains in India.
IDBI Bank(IDBI.NS), opens new tab slumped 13.3% after media reports said the Indian government will shelve the bids it received for a majority stake sale in the lender.