Indian shares were little changed in early trading on Monday as investors maintained a cautious stance ahead of details of threatened US sanctions on Iran and the potential impact on global energy prices.
The Nifty 50 rose 0.14% to 24,285.60 points, while the Sensex gained 0.19% to 77,691.65 as of 9:38 a.m. Indian Standard Time.
The modest gains came after both indexes fell about 0.5% last week as investors assessed the potential impact of escalating Middle East tensions on inflation, crude oil prices and bond yields.
US Treasury Secretary Scott Bessent is scheduled to hold a press conference at 1800 GMT on Monday, where further details of Washington’s threatened sanctions on Iran are expected.
Bessent has warned that the United States could impose what he described as the toughest sanctions in history on Iran.
Iran, in response, has threatened to halt all oil exports from the Gulf if the economic pressure continues.
The escalating tensions have kept investors focused on the potential impact on global energy markets.
The conflict between the United States and Iran has lasted nearly six months and has contributed to higher energy prices, increasing concerns about inflation and the outlook for interest rates.
Brent crude futures were trading around $93 per barrel, keeping pressure on oil-importing economies such as India.
V.K. Vijayakumar, chief investment strategist at Geojit Investments, said the Nifty was likely to trade within a range of 24,200 to 24,600 points in the near term.
He said a breakout above 24,600 points was unlikely while elevated crude oil prices and escalating geopolitical tensions continued to weigh on investor sentiment.
Eight of the 16 major sectors advanced during early trading, while broader small-cap and mid-cap stocks gained 0.5% and 0.3%, respectively.
Information technology stocks were among the stronger performers, rising 0.8% after falling 2.6% the previous week.
Indian IT companies generate a significant portion of their revenue from the United States, making the sector particularly sensitive to developments in the US economy and monetary policy.
Investors are also looking ahead to Federal Reserve Chair Jerome Powell’s address at the Jackson Hole Symposium later this week for clues about the future direction of US interest rates.
Among individual stocks, Vishal Mega Mart jumped 9% after the company reappointed Gunender Kapur as managing director and chief executive officer.
The FTSE semi-annual review of its major indexes, which takes effect on September 21, also supported modest gains in several stocks.
Cupid, Pine Labs and Anthem Biosciences rose between 0.5% and 2% during early trading.
For Indian investors, the immediate focus remains on developments around US sanctions against Iran, crude oil prices and signals from the Federal Reserve.
Any further escalation in the Middle East could increase energy costs and inflationary pressure, potentially complicating monetary policy decisions and keeping Indian equities volatile in the near term.
