The Nifty 50 index was up 0.09% at 17,378.65, as of 9:49 a.m. IST. The S&P BSE Sensex rose 0.06% to 59,028.28.
Ten of the 13 major sectoral indexes advanced with auto stocks rising 1% on strong March sales. SML Isuzu jumped over 15% after passenger vehicle sales in March surged 167%. Inflation concerns soured sentiment on a sharp rise in crude oil prices after Saudi Arabia and other oil-exporting countries announced a surprise production cut over the weekend.
Analysts expect the cuts to lift oil prices by about $10 per barrel, with Goldman Sachs raising its Brent crude forecast to $95 per barrel by the end of 2023.
Besides that, the rise in crude prices is a negative for oil-importing countries like India, where the commodity accounts for a significant share of the country's import bill. Investors are likely to tread with caution ahead of the Reserve Bank of India's rate decision, due on April 6, said two analysts. The RBI is likely to raise its main interest rate by 25 basis points on Thursday and then pause for the rest of the year, according to a Reuters poll of economists.
Most Adani Group stocks declined on Monday. India's
market regulator is investigating a possible violation of
"related party" transaction rules in the conglomerate's dealings
with at least three offshore entities linked to the brother of
group founder Gautam Adani, Reuters reported, citing two people.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Janane Venkatraman and Dhanya Ann Thoppil)
