Indian equities slip at open as oil steadies near $115 and Fed decision looms

Indian shares are set to open lower on Tuesday as Brent crude hovers near $115 a barrel and investors await the US Federal Reserve’s policy decision later this week.

Market Outlook

GIFT Nifty futures traded at 22,669.5 points at 7:53 a.m. IST, pointing to a negative start for the benchmark Nifty 50, which had closed at 22,753.2 on Monday. The Nifty 50 and BSE Sensex rose 0.7% on Monday, snapping a four‑session losing streak thanks to post‑earnings gains in a few stocks. Brent crude futures stayed close to a six‑month high after attacks on Saudi Arabia dimmed hopes of a quick de‑escalation in the region. Higher oil prices strain India’s inflation outlook, fiscal deficit and corporate earnings because the country imports most of its energy. US Federal Reserve is expected to keep rates unchanged on Wednesday and then raise them in December, according to a Reuters poll of economists. "A hawkish signal could lift yields and the dollar and restrict emerging‑market flows, while balanced guidance may allow the recent equity recovery to broaden," said Hariselvan Radhakrishnan, founder and CEO of HST Wealth. Foreign investors sold Indian shares worth 14.62 billion rupees ($153.60 million) on Monday. They have off‑loaded $4.75 billion in October and a record $32.56 billion so far in 2026. Asian markets rose over 1% on a rally in AI‑linked stocks after Anthropic filed a prospectus for a record‑breaking IPO. India’s limited AI exposure is cited as a key reason for the foreign sell‑off and the Nifty’s lag behind emerging‑market peers.

Company Highlights

Tata Consumer Products posted better‑than‑expected Q2 profit, driven by steady demand for packaged foods and beverages as it expands beyond tea and salt. Paytm’s quarterly profit jumped nearly 11‑fold to 2.26 billion rupees, with revenue up 28.5%. Nazara Technologies turned to profit this quarter after a loss a year earlier, while revenue surged 53%.

Context

Higher global oil prices often push up Indian inflation and narrow corporate margins, while Fed rate cues can shift foreign portfolio flows. Limited AI investment leaves Indian equities vulnerable when global tech stocks rally.