Nifty and Sensex Recover Early Losses Despite Prolonged Middle East Tensions

The Nifty 50 index was up by 4.65 points to 23,155.75 while the Sensex was up by 21.12 points to 74,585.04.

Despite significant monthly losses fueled by the U.S.-Israeli conflict with Iran and the resulting closure of the Strait of Hormuz, Indian benchmark indexes showed a volatile recovery on Monday, with the Nifty 50 and Sensex posting modest early gains led by the financial and consumer sectors. However, the broader market remains under pressure as Brent crude prices hovering above $104 per barrel threaten India’s fiscal stability, prompting Citi to lower its year-end Nifty target and triggering record foreign capital outflows of over $5.7 billion this March. While Asian peers provided a positive lead, domestic sentiment stayed cautious due to the prolonged geopolitical uncertainty and a sharp 13.3% drop in IDBI Bank following reports that the government may shelve its majority stake sale.