Indian equity benchmarks muted as elevated oil, Fed in focus

Indian shares closed nearly flat on Tuesday, with the Nifty 50 down 0.02% at 22,749.75 and the Sensex slipping 0.01% to 73,598.67. Business Recorder reported that investors remained cautious as Brent crude traded near $116 per barrel, while markets awaited the Federal Reserve’s policy decision later this week.

Oil prices were supported by attacks on Saudi Arabia, which weakened hopes for a quick easing of regional tensions. Small-cap and mid-cap shares gained 2.7% and 1%, respectively, while 12 of India’s 16 major sectors advanced. Gains in auto and pharmaceutical stocks contrasted with declines in heavyweight financial and information technology shares.

The Nifty 50 has fallen about 13% so far in 2026, with high crude prices and foreign outflows weighing on the benchmark. The report said a hawkish Fed position could tighten global financial conditions and unsettle emerging-market flows. For Pakistani investors, the combination of elevated oil and a closely watched US rate decision puts global market conditions and energy costs in focus.