BUZZ — Indian stocks flat as rising oil prices offset IT rebound

* India's stock benchmarks Nifty 50, Sensex trade flat, as rising oil prices, persistent foreign outflows weigh on sentiment, countering a rebound in beaten-down IT stocks * Brent crude rises to about $106.5 a barrel after two vessels were struck in the Strait of Hormuz and Iranian officials told Reuters they were deploying new tactics to target ships * Higher oil prices are detrimental for the world's third-largest importer, India, as it adds to inflationary pressures, supply concerns and squeeze corporate profit margins * Nine of the 16 major sectors decline; the broader small-caps and mid-caps little changed * IT index, which gained 5.2% in the previous session led by HCLTech on upbeat results, rise 1% on the day to trim year-to-date losses to 21% * Among stocks, Bank of Baroda falls 3.1% after UAE-based businessman BR Shetty, founder of NMC Healthcare, files a $15 billion lawsuit against the state-owned lender and 25 other defendants in the Bombay High Court * PNC Infra jumps 7% after Delhi High Court stays National Highways' debarment orders against the infrastructure firm (Reporting by Bharath Rajeswaran in Bengaluru) ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;)