Indian shares are set for a muted open on Monday as high oil prices and US Federal Reserve policy concerns weigh on sentiment. The Nifty 50, which closed at 22,600 on Friday, faces pressure after falling last week. Investors now watch global trends closely while tracking key corporate earnings reports.
Indian shares are expected to open little changed on Monday as sentiment remains subdued over elevated crude oil prices and their impact on inflation, with investors also focused on the US Federal Reserve's policy decision later this week.
GIFT Nifty futures were at 22,608 at 7:46 a.m. IST, indicating a muted start for the benchmark Nifty 50, which closed at 22,600 on Friday.
The Nifty 50 and BSE Sensex fell 2.4% and 2.2%, respectively, last week, declining in all four sessions on surging oil prices and West Asia tensions.
Brent crude futures traded around $115 a barrel, easing from a near six-month high of $117 after the Indian market close on Friday, though ongoing attacks on Saudi Arabia kept supply concerns in focus. [O/R]
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.3%. [MKTS/GLOB]
The Fed will skip raising interest rates this week and deliver a hike in December, according to nearly all economists polled by Reuters, as policymakers signal patience even as inflationary pressures argue for a tougher response.
Higher US interest rates make emerging market equities such as India less attractive to foreign investors as the dollar and Treasuries gain favour.
Foreign investors bought Indian shares worth 8.9 billion rupees ($93.74 million) on Friday, according to provisional data. They were net buyers in three of the last five trading sessions.
** Kotak Mahindra Bank reports higher-than-expected quarterly profit, driven by stronger loan demand and lower provisions for bad loans
** Drugmaker Dr Reddy's Laboratories posts better-than-expected quarterly profit, as domestic demand helps cushion slowdown in its key US market