Sensex Closes at 72,883.64 as Investors Await Fed, Oil Rises

Key Facts

Indian shares closed lower on October 28, with the Sensex at 72,883.64 and the Nifty ending the session at 22,580.45, according to EL7 data. The session unfolded as investors awaited the U.S. Federal Reserve’s decision, alongside a rise in oil prices in early trading. The meeting spanning October 27 and 28 was listed on the Federal Open Market Committee’s schedule, according to the central bank’s official calendar. Oil’s moves add to the session’s significance for India, as analysts linked higher prices to risks to the energy bill, inflation, the rupee and corporate margins. Investors were also set to track Indian economic data and company results, in addition to the expected Fed decision.

Brent crude, the international benchmark, rose 0.4% to $109.82 a barrel in early trading on Wednesday, while U.S. crude gained 0.5% to $100.37, according to an Associated Press report. These levels follow a Reuters report published on October 27 that said oil remained near $115 a barrel during morning trading. An analyst at Motilal Oswal said continued attacks on Saudi Arabia had kept concerns about supply disruptions and inflation elevated, and weakened the domestic market outlook. Analysts linked higher prices to an increase in India’s energy import bill, more complex inflation forecasts, and pressure on the rupee and corporate margins. That keeps oil movements in focus alongside monetary policy decisions and company results as investors track Indian shares.

Other Asian indexes posted gains in early trading on October 28, with Japan’s Nikkei up 1.3% to 64,094.51 and South Korea’s Kospi rising 5.6% to 5,952.41, according to the Associated Press. In the U.S. bond market, the 10-year Treasury yield slipped to 4.99% from 5.00% late Monday, a move the report described as limited ahead of the Fed decision. An analyst at HST Wealth said investors would focus on the central bank’s guidance. He added that continued focus on inflation could push U.S. yields and the dollar higher, keeping foreign investment flows to emerging markets under pressure. These factors place Indian share performance in the broader context of Asian market moves and expectations for U.S. monetary policy.

The Sensex and Nifty had posted losses in the holiday-shortened week ended October 25, with the Sensex shedding 1,605.44 points, or 2.15%, and the Nifty falling 546.15 points, or 2.36%, according to data cited by Business Standard from Press Trust of India. On October 27, Indian shares were little changed in morning trading as oil remained near $115 a barrel and investors awaited the Fed decision, according to a Reuters report published via MarketScreener. The report said higher oil prices hurt India because it relies on imports for most of its energy needs. On local data, an analyst at Religare Broking said investors would track September industrial production and manufacturing data due on October 28, alongside Indian company results. This follows a week in which both indexes fell, leaving investors to monitor market performance, local data, oil developments and monetary policy.

Following the Fed decision scheduled for October 28, the U.S. Bureau of Economic Analysis set the release of its September personal income and outlays report for October 29 at 8:30 a.m. The report includes personal consumption expenditures price index data, including the core index, according to the bureau’s schedule. The data are due the day after the Fed meeting, giving markets price and spending indicators to track after the decision. The central bank’s guidance, as the HST Wealth analyst said, remains a focus for investors, with the path of yields and the dollar potentially affecting flows to emerging markets. Investors are also tracking Indian industrial production and manufacturing data and company results cited by the Religare Broking analyst.