Sensex and Nifty opened red on Monday as elevated crude oil prices and their inflationary impact weigh on sentiment, while investors awaited the US Federal Reserve’s policy decision later this week.
GIFT Nifty futures stood at 22,608 at 7:46 am, signalling a muted start for the benchmark Nifty 50, which closed at 22,600 on Friday, according to figures cited in a Reuters report.
The Nifty 50 and BSE Sensex fell 2.4% and 2.2%, respectively, last week, declining in all four trading sessions as oil prices surged and tensions in the Middle East escalated.
Brent crude price
As on 9:11 am on Monday, brent crude futures traded around $114.02 a barrel, easing from a near six-month high of $117 reached after the Indian market closed on Friday. However, continued attacks on Saudi Arabia kept supply concerns in focus.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.3%.
Nearly all economists polled by Reuters expect the Fed to hold interest rates steady this week and raise them in December, as policymakers signal patience despite inflationary pressures that warrant a tougher response.
Higher US interest rates tend to make emerging market equities such as India less attractive to foreign investors, as the dollar and US Treasuries become more appealing.
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 past five trading sessions.
Stocks to watch
Infosys: The IT major cut its annual revenue growth forecast as weakness in its key North American market deepened, displaying how AI is disrupting the traditional IT services industry.
Kotak Mahindra Bank: The lender reported a higher-than-expected quarterly profit, driven by stronger loan demand and lower provisions for bad loans.
Dr Reddy’s Laboratories: The drugmaker posted a better-than-expected quarterly profit, with domestic demand helping cushion a slowdown in its key US market.