Indian shares on track for muted open as oil concerns persist, Fed in focus

Indian equities were set for a subdued Monday start as expensive crude and its inflationary effects weighed on sentiment, while investors awaited the US Federal Reserve’s decision later this week. GIFT Nifty futures stood at 22,608 at 7:46 a.m. IST, pointing to little movement for the Nifty 50, which ended Friday at 22,600.

The Nifty 50 and BSE Sensex lost 2.4% and 2.2% last week, falling in each of the four sessions as oil climbed and Middle East tensions persisted. Brent traded near $115 a barrel, below a recent near six-month peak of $117, while attacks on Saudi Arabia sustained concerns about supply.

Reuters reported that economists widely expect the Fed to leave rates unchanged this week and raise them in December. Higher US rates can divert foreign demand from emerging-market shares; foreign investors nevertheless purchased Indian equities worth 8.9 billion rupees ($93.74 million) on Friday and were net buyers in three of the past five sessions.