Indian shares seen lower as oil stays near six-month high, Fed in focus

Indian equities were set for a weaker start on Tuesday, with GIFT Nifty futures at 22,669.5 at 7:53 a.m. IST, below Monday’s Nifty 50 close of 22,753.2. Brent crude stayed close to $115 a barrel, while investors awaited the US Federal Reserve’s decision later this week. The Nifty 50 and BSE Sensex had each advanced 0.7% on Monday, ending a four-session decline.

Business Recorder reported that crude was near a six-month peak after attacks on Saudi Arabia reduced hopes of an early easing in regional tensions. Higher oil costs are a concern for India because the country imports most of its energy, with possible consequences for inflation, public finances and company earnings. A Reuters poll found economists expect the Fed to keep rates unchanged on Wednesday, while foreign investors sold Indian shares worth 14.62 billion rupees on Monday and had sold $4.75 billion so far in October.

Asian shares gained more than 1%, supported by AI-related stocks after Anthropic filed an IPO prospectus. The report said India’s limited exposure to large AI companies has contributed to foreign selling and the Nifty 50’s weaker performance against emerging-market peers.