Indian indices set for flat open as GIFT Nifty steadies, oil prices dip

The GIFT Nifty traded at 22,610 around 8 a.m., up just two points (0.01%), indicating a largely flat opening for India’s benchmark Sensex and Nifty after four days of declines. The Sensex had closed Friday at 73,123.83, down 0.17%, and the Nifty at 22,600, down 0.39%.

Asian equity markets also edged lower on Monday as investors weighed higher energy costs, geopolitical uncertainty and the outlook for artificial-intelligence investments ahead of a busy week of central-bank meetings and corporate earnings. MSCI’s broadest Asia-Pacific index outside Japan slipped 0.1%, with Japan’s Nikkei falling 0.8% and South Korea’s Kospi down 0.4%.

U.S. equity futures were modestly positive, with both the S&P 500 and Nasdaq futures gaining 0.2%, offering limited support to global risk sentiment. In the United States, the Dow Jones Industrial Average fell 1.23% on Friday, while the S&P 500 and Nasdaq Composite declined 0.52% and 0.21% respectively, as investors awaited major technology earnings and the Federal Reserve’s October policy meeting.

Crude oil prices retreated on Monday, with Brent crude futures dropping $1.56 (1.34%) to $115.16 a barrel and U.S. West Texas Intermediate falling $1.60 (1.55%) to $101.67 a barrel. The decline followed reports of diplomatic contacts aimed at easing Middle-East tensions, including a visit by Qatari mediators to Tehran.

"Indian equities are likely to remain under pressure as elevated crude prices, escalating geopolitical tensions and uncertainty over the Federal Reserve's policy outlook weigh on investor sentiment," said Ponmudi R, CEO of Enrich Money.

The Federal Reserve’s October 27-28 meeting is expected to keep rates unchanged, but market participants will watch for guidance on future policy direction. Analysts note that while individual earnings could present opportunities, broader market recovery may be constrained unless external pressures ease.