Why are Indian shares expected to open flat despite a sharp drop in oil prices?

Indian shares are set for a flat open because investors are balancing the positive impact of lower oil prices—Brent crude fell 1.3% to $78.5 a barrel following a U.S.-Iran interim agreement that reopened the Strait of Hormuz and waived sanctions on Iranian oil exports—against concerns from the U.S. Federal Reserve's signal that it may still raise interest rates later this year, which typically reduces the relative appeal of emerging markets like India and keeps risk appetite in check.

How has the recent decline in oil prices affected Indian equity indices and why is it significant for India?

The drop in crude prices has fueled a rebound in Indian equities, with the Nifty 50 and Sensex rising 4% and 4.5%, respectively, over the last four sessions; this is significant because lower oil prices ease concerns over inflation and external balances for India, the world's third-largest oil importer.

Indian Shares Set for Muted Start as Fed Rate Hike Projection Offsets Oil Slump

Jun 17, 2026

Indian equities opened flat as falling oil prices offset Fed rate hike concerns following a US-Iran energy deal. Additionally, Lupin launched a new hypertension drug in the U.S., and Waaree Renewable Technologies secured increased solar project orders.

reuters

2026-06-17

Indian Shares Set for Muted Start as Fed Rate Hike Projection Offsets Oil Slump

Indian Shares Set for Muted Start as Fed Rate Hike Projection Offsets Oil Slump

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