INDIA STOCKS-Indian shares open lower as US-Iran stalemate lifts oil prices

Updates for markets open

Sept 28 (Reuters) - Indian shares opened lower on Monday, with investors remaining cautious after the benchmark indexes' longest weekly losing streak since 2020 as oil prices rose following a stalemate in US-Iran peace talks.

US President Donald Trump said he had rejected an Iranian proposal to reopen the Strait of Hormuz and end fighting, while Iran insisted on Sunday that only diplomacy can solve its conflict with the United States and Israel.

The Nifty 50 .NSEI fell 0.33% to 23,064.9, while the BSE Sensex .BSESN shed 0.22% to 73,734.83, as of 9:15 a.m. IST.

Fourteen of the 16 major sectors logged losses. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 fell 0.2% each.

Brent crude futures LCOc1 climbed 2% to about $106.5 per barrel, while Asian markets .MIAPJ0000PUS were down 0.2%. MKTS/GLOB

India, which is the world's third-largest crude importer, remains vulnerable to higher prices as they can stoke inflation, raise the import bill, and drag corporate margins.

(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sherry Jacob-Phillips and Rashmi Aich)

((VivekKumar.M@thomsonreuters.com;))