Indian shares dipped at open on Monday, as oil prices jumped following China's unwinding of Covid-19 restrictions, while investors awaited the Reserve Bank of India's monetary policy decision due later in the week.
The S&P BSE Sensex opened 0.09 per cent down to 62,809, as of 9:16 a.m. The NSE Nifty 50 index fell 0.08 per cent to 18,683.
Oil prices rose after OPEC+ held its output targets in its meeting on Sunday and easing China curbs offered hopes of a rebound in fuel demand.
Rise in oil prices is a negative for oil-importing countries like India, where crude oil constitutes the most in the country's import bill.
More Chinese cities announced the easing of coronavirus curbs on Sunday as Beijing tries to make its zero-Covid policy more targeted after recent protests against restrictions.
Nifty Metal index was the top sectoral gainer, adding 1.11 per cent, led by Hindalco, National Aluminium. The rise in metal stocks comes amid renewed hopes of demand revival in China, a key importer of metals.
Indian markets are also focused on the central bank's monetary policy decision, which is due on Wednesday. The RBI is expected to raise interest rates by a smaller 35 basis points to 6.25 per cent.
On Friday, Wall Street equities closed lower as investors digested a stronger-than-expected jobs report, which raised concerns about the U.S. central bank's ability to moderate rate hikes.