June 1 (Reuters) - Indian shares surrendered early gains on Monday as record foreign outflows and elevated crude prices dampened sentiment, while IT stocks gained, and IndiGo and Asian Paints rose following quarterly results.

The Nifty 50 fell 0.04% to 23,538.20 and the BSE Sensex added 0.01% to 74,780.64, as of 10:30 a.m. IST.

They rose about 0.7% each at the open.

"The current market setup favours a sell-on-rise approach with stock-specific opportunities expected to outperform until directionality emerges," said Dhupesh Dhameja, derivatives research analyst at SAMCO Securities.

Both benchmarks fell about 1.5% on Friday in their busiest session in nearly six years, driven by MSCI's May index rebalancing, record foreign outflows of $2.22 billion and the highest-ever turnover on the National Stock Exchange of India.

Brent crude rose 2.4% to $93.3 a barrel on concerns over a lack of progress in U.S.-Iran peace negotiations. [O/R]

Thirteen of the 16 major sectors logged losses. The broader small-caps and mid-caps dropped 0.2% and 1%, respectively.

The IT index rose 3.2%, after strong earnings from U.S.-based tech firm Snowflake lifted global software-as-a-service, cloud and IT services shares. The index rose 0.6% on Friday as well.

The results were a positive read-through for Indian IT services firms such as TCS, Infosys, Wipro, HCLTech, LTIMindtree, Hexaware, Coforge and Persistent, said Karan Uppal and Krunal Khanzode of PhillipCapital.

Asian Paints gained 2% after beating March quarter profit expectations, while IndiGo operator InterGlobe Aviation rose 2.8% despite posting a quarterly loss, as brokerages remained positive on passenger revenue trends and valuations.

Textile makers such as Vardhman Textiles, Arvind, Welspun Living, Trident, KPR Mill and Raymond Lifestyle climbed between 2% and 7%.

The government scrapped customs duties on cotton imports for five months to boost supplies of contamination-free natural fibre for textile exporters amid strong overseas demand for yarn.

(Reporting by Vivek Kumar M and Bharath Rajeswaran in Bengaluru; Editing by Ronojoy Mazumdar and Janane Venkatraman)

By Bharath Rajeswaran and Vivek Kumar M