Mumbai, August 12: Amid geopolitical uncertainty, rising crude oil prices have put pressure on the Indian stock market. On the third trading day of the week, both major benchmarks opened flat.
The 30-share BSE Sensex opened at 78,263.33, up 0.13 percent or 109.08 points from its previous close of 78,154.25. Meanwhile, the NSE Nifty 50 opened slightly higher at 24,472.45, gaining 0.75 points from its last close of 24,471.70.
However, both benchmarks faced declines later in the session. As of the time of reporting, the Sensex had dropped 131 points or 0.16 percent to 78,040, while the Nifty slipped 0.15 percent to trade at 24,435.
During the day, the Sensex fell to a low of 77,881, down 273 points or 0.34 percent. The Nifty 50 also saw a decline, dropping 81 points or 0.33 percent to reach a low of 24,390. The continuous rise in oil prices and global uncertainties have negatively impacted investor sentiment.
In broader market performance, the Nifty Midcap index recorded a decline of 0.09 percent, while the Nifty Smallcap index saw a slight increase of 0.07 percent.
Sector-wise, the Nifty Metal index emerged as the top performer, gaining 0.86 percent. Additionally, the Nifty PSU Bank and Nifty Auto indices rose by 0.60 percent and 0.23 percent, respectively.
Conversely, defensive and consumer-based sectors experienced selling pressure. The Nifty FMCG index fell by 0.64 percent, while the Nifty Realty and Nifty Healthcare indices dropped by 0.58 percent and 0.41 percent, respectively. The Nifty IT index also saw a decline of 0.38 percent.
Among the Nifty 50 constituents, Max Healthcare Institute, Apollo Hospital, Bajaj Finserv, Tata Consumer, Dr. Reddy’s, and Titan witnessed the most significant declines.
Market experts indicate that the Indian stock market is currently trading within a limited range. They suggest that despite the potential for market growth, high crude oil prices remain a significant obstacle.
Analysts noted, “The market has been unable to break through upper levels and is trading within a confined range. The primary reason for this is the surge in Brent crude prices, which have risen above $89 per barrel.”
Experts believe that the escalating tensions between the U.S. and Iran are also causing investor concerns. Recent actions by the U.S. military against a Panama-flagged container ship and Iran’s firm stance on reopening the Strait of Hormuz have added uncertainty to the oil market. If these tensions persist, crude oil prices may remain elevated, impacting the Indian stock market.
However, some positive signals have emerged. Optimism about the Indian economy persists. A recent SBI Research report projected India’s GDP growth rate for the fiscal year 2026-27 at 8 percent, while the Reserve Bank of India (RBI) estimates it at 6.7 percent.
Market analysts suggest that if the economy indeed grows at an 8 percent rate, companies could see better-than-expected earnings, which would be a strong positive factor for the stock market.
Meanwhile, the international oil market also experienced upward momentum. Brent crude rose nearly 1 percent to $89.87 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed 1.14 percent to trade at $84.14 per barrel.
Asian markets displayed mixed trends. Japan’s Nikkei index showed slight gains, while Hong Kong’s Hang Seng fell by 1 percent. South Korea’s KOSPI index surged by over 4 percent, making it one of the top performers among global markets.
U.S. markets saw weakness on Tuesday, with the Nasdaq index down 0.6 percent and the S&P 500 index falling by 0.32 percent, which also affected sentiment in Asian markets.
Experts believe that in the coming days, the direction of the Indian market will largely depend on crude oil prices, geopolitical conditions in West Asia, foreign investor activities, and domestic economic indicators. Currently, strong economic growth expectations are supporting the market, but rising oil prices remain a concern for investors.
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