Oil Tops $115 as Indian Stocks Extend Their Slide

Brent crude rose above $115 a barrel as Indian stocks ended last week sharply lower: the Sensex lost 2.2%, and the Nifty 50 fell 2.4%. Both indexes fell in all four trading sessions, leaving investors to weigh costly energy against a week packed with major economic decisions. Monday’s expected opening looked subdued, with no clear sign of a rebound. ⁵

That weak finish followed rising oil prices and renewed tensions in West Asia. Brent slipped from a near six-month high of $117 but stayed around $115, while attacks on Saudi Arabia added to supply worries. GIFT Nifty, a futures contract that can hint at where Indian shares may open, hovered near the Nifty’s Friday close of 22,600. Asian markets were mostly lower, and US stocks ended Friday down. ^1,5

At $115, oil matters well beyond energy companies. India imports much of its crude, so high prices lasting longer can raise the country’s import bill, push up inflation and weigh on the rupee. Investors are also watching the US Federal Reserve’s decision later this week. Higher US rates can make American investments more appealing than Indian shares, while foreign investors have sold Indian stocks heavily this year, despite buying on Friday. ^5,10

That leaves traders weighing a small sign of support against several risks. Foreign investors bought ₹890 crore worth of Indian shares on Friday, and domestic funds also bought heavily, but one day of buying has not erased the weekly losses. Company results could move individual shares: Infosys cut its annual growth outlook, while Kotak Mahindra Bank and Dr Reddy’s reported stronger-than-expected profits. The Fed’s decision and guidance later this week are the next major signals. ^5,9