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

Indian shares are poised for a subdued opening on Monday, as concerns over high oil prices and their effect on inflation persist, according to wire material. Investors are also closely watching the US Federal Reserve's policy decision later in the week. The benchmark Nifty 50 was at 22,608 at 7:46 a.m. IST on Monday, suggesting a lackluster start for the index, which ended at 22,600 on Friday.

Both the Nifty 50 and the BSE Sensex declined by 2.4% and 2.2%, respectively, over the past week, slipping in each of the four trading sessions due to surging oil prices and Middle East tensions. Brent crude futures were trading near $115 a barrel, down from a near six-month peak of $117 after the Indian market closed on Friday, although ongoing attacks on Saudi Arabia kept supply worries front and center.

MSCI's Asia-Pacific index outside Japan fell 0.3%. The Federal Reserve is expected to refrain from increasing interest rates this week and is likely to raise rates in December, as per almost all economists surveyed by Reuters. They maintain a patient stance despite inflationary pressures favoring a more aggressive move. Higher US interest rates make emerging market equities, including Indian stocks, less appealing to foreign investors, as the dollar and Treasuries become more attractive.

On Friday, foreign investors purchased Indian shares worth 8.9 billion rupees ($93.74 million), indicating continued net buying in three of the last five trading sessions.