Brent at $116.13 Pressures Indian Stocks Ahead of Fed Decision
Key Facts
Indian shares fell at Wednesday's open on Oct. 28 as oil prices rose, with markets watching for the Federal Reserve's decision and the expected listing of Jio Platforms, Reuters reported. The Nifty 50 fell 0.32% to 22,678, while the Sensex lost 0.47% to 73,253.44 at 09:15 a.m. India time. Oil rose 1.2% to $115.3 a barrel in the morning, after reports of an attack on a refinery in Saudi Arabia. Those reports revived concerns about supply disruptions and inflation, as energy importers, including India, face higher costs. EL7 data later showed Brent closing at $116.13 a barrel, compared with $113.88 the previous day.
India's sensitivity to rising crude prices is pronounced because it imports most of its energy needs, according to a Reuters report on Oct. 27. The agency said higher oil prices could push up inflation and weigh on the fiscal deficit and corporate earnings. That puts crude price movements at the center of concerns about the Indian market, as energy costs could be passed on to companies and the broader economy. Indian shares had also traded cautiously in the previous session, with oil near a six-month high. Reuters linked that level to attacks on Saudi Arabia that dimmed hopes for a swift easing of regional tensions.
Market indexes also fell on Oct. 27, with the Nifty 50 down 0.06% at 22,738.55 and the Sensex down 0.16% at 73,497.28 at 09:49 a.m. India time, Reuters reported. Wednesday's opening losses came as investors awaited the Federal Reserve's decision later in the day. The U.S. central bank scheduled the Federal Open Market Committee meeting for Oct. 28 at 2:00 p.m., followed by a news conference at 2:30 p.m. Oil concerns therefore coincided with a closely watched U.S. monetary policy event during the same session. Reuters also cited the expected listing of Jio Platforms among the developments watched by the Indian market at the open.
On the domestic data front, India's September industrial production reading was scheduled for release on Wednesday, Oct. 28, according to the Indian Ministry of Statistics. The latest reading available in the data cited was for August, when the industrial index grew 8.0% year over year, after a provisional estimate of 6.7% growth in July. Manufacturing grew 9.0% year over year in August, while electricity and gas rose 12.3%. Government data showed positive growth in 18 of 23 industry groups in manufacturing compared with August 2025. Major contributors included electrical equipment manufacturing, up 30.9%; other transport equipment, up 25.3%; and motor vehicles, trailers and semi-trailers, up 25.2%.