INDIA STOCKS-Indian shares on track for muted open as oil concerns persist, Fed in focus

By Reuters News

- Indian shares are expected to open little changed on Monday as sentiment remains subdued over elevated crude oil prices and their impact on inflation, with investors also focused on the US Federal Reserve's policy decision later this week.

GIFT Nifty futures were at 22,608 at 7:46 a.m. IST, indicating a muted start for the benchmark Nifty 50 .NSEI, which closed at 22,600 on Friday.

The Nifty 50 and BSE Sensex .BSESN fell 2.4% and 2.2%, respectively, last week, declining in all four sessions on surging oil prices and Middle East tensions.

Brent crude futures traded around $115 a barrel, easing from a near six-month high of $117 after the Indian market close on Friday, though ongoing attacks on Saudi Arabia kept supply concerns in focus. O/R

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS eased 0.3%. MKTS/GLOB

The Fed will skip raising interest rates this week and deliver a hike in December, according to nearly all economists polled by Reuters, as policymakers signal patience even as inflationary pressures argue for a tougher response.

Higher US interest rates make emerging market equities such as India less attractive to foreign investors as the dollar and Treasuries gain favour.

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 last five trading sessions.


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($1 = 94.9400 Indian rupees)

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