Indian shares opened lower on Tuesday, giving back some of the previous session’s gains, as oil remained near $115 a barrel and investors stayed cautious ahead of the US Federal Reserve’s policy decision later this week.
The benchmark Nifty 50 fell 0.2% to 22,708.8, and the Sensex shed 0.17% to 73,484.38, as of 09:15 am IST.
Eight of the 16 major sectors logged losses. The broader small-caps and mid-caps rose 0.5% and 0.1%, respectively.
Brent crude futures hovered near a six-month high after attacks on Saudi Arabia dampened hopes for an immediate easing of tensions in the region.
Higher oil prices are a negative for India, which imports the bulk of its energy requirements, as they can increase inflation, strain its fiscal deficit and hit corporate profits.
The Fed is expected to hold interest rates steady on Wednesday, before resuming its tightening cycle with a December increase, as per a Reuters poll of economists.
Among stocks, Tata Consumer Products rose 3% after reporting better-than-expected second-quarter profit, helped by steady demand for its packaged foods and beverages as the company expands beyond traditional tea and salt businesses.
(With PTI inputs)