Indian shares rise; higher crude caps gains

Indian shares extended gains on Tuesday, lifted by metals and a rebound in auto stocks after a recent slide, though worries over high crude prices capped gains.

The Nifty 50 rose 0.74% to 23,581.15, while the BSE Sensex gained 0.75% to 76,070.84.

The bourses are up 1.9% and 2% in two sessions this week after confirming a technical correction last week.

“Buying has resurfaced this week after the correction, as broader valuations have become more reasonable and value has started emerging in select pockets,” said Rakesh Pujara, founder and managing partner at Compounding Wealth Advisors.

The U.S.-Israeli war on Iran is in its third week. Brent crude hovered around $103 per barrel with the Strait of Hormuz mostly shut and U.S. allies refusing to send warships to help tankers navigate the key chokepoint that handles about 20% of global oil supplies.

“The handbrake on the market is higher crude prices and till the Middle East crisis eases, foreign selling is likely to continue,” Pujara said.

Foreign investors have sold Indian stocks worth $6.9 billion in March so far, and are on course for their highest monthly sale since January 2025.

With foreign investors sitting on sizable short positions, any unwinding of those bets could trigger a short-term bounce, according to three analysts.

Fourteen of the 16 major sectors rose while small-caps and mid-caps advanced 0.7% and 1%.

Metals gained 2.8%, led by steel makers such as Tata Steel, JSW Steel, Jindal Steel and Lloyds Metals after Nomura reiterated “buy”, citing improving domestic price momentum.

Auto shares gained 2.1%, after rising 1.7% in the previous session. They had fallen 10.6% last week in their worst showing in six years, on fears the Middle East war could hit production and exports.

IT index lost 1% on Tuesday, falling 4.6% in six sessions, ahead of the widely expected rate pause by the U.S. Federal Reserve on Wednesday.