Sensex, Nifty 50 on Watch: Fed Rate Decision, Crude Oil Prices, and Domestic Inflation Data

The Indian stock market is set to reopen on Tuesday, September 15, after a holiday-shortened week. Investors are closely tracking several key factors that may dictate the direction of the Sensex and Nifty 50.

One major factor is the US Federal Reserve's interest rate decision, which will be announced on September 15-16. The Fed's monetary policy decision and commentary on the future path of interest rates will be closely watched by investors.

Rising crude oil prices are another significant concern for Indian equities. Brent crude has retested the $110-per-barrel mark, intensifying worries about imported inflation, the current account deficit, corporate margins, and the rupee.

Ajit Mishra of Religare Broking noted that escalating US-Iran tensions have raised concerns about disruptions to global energy supplies. Elevated crude prices could increase India's import bill, put pressure on the rupee, widen the current account deficit, and squeeze corporate profit margins.