3 weeks ago
Markets Open Flat as Crude Nears $90, Inflation in Focus
The stock market in India is like a huge scoreboard that shows how much companies are worth.
On Wednesday, that scoreboard barely moved — it opened almost exactly where it finished the day before, which people call opening 'flat.'
The reason is that the price of oil is very high, close to 90 dollars for one barrel.
Oil is expensive because there is trouble near a very important waterway called the Strait of Hormuz, where huge ships carry oil to the world.
When oil gets pricey, companies have to pay more to make and move their goods, so investors get nervous.
Investors were also waiting for new numbers from America that show how fast prices are rising there, called inflation data.
The day before, on Tuesday, the market had fallen a little because of these worries.
Analysts say the high oil price is the main thing stopping the market from climbing higher.
Everyone is now watching the new inflation numbers to decide what to do next.
India's Nifty 50 opened at 24,472.45 and traded at 24,451.95 (down 0.08%), while the Sensex traded at 78,127.07 (down 0.03%).
Brent crude hovered near $89–90 per barrel, pressured by stalled Strait of Hormuz negotiations and fresh attacks on shipping in the region.
Tuesday's session ended weak, with the Nifty falling 112.10 points (0.46%) and the Sensex dropping 388 points below key psychological levels.
The rupee weakened for a second consecutive session, closing at ₹95.44 on Tuesday, pressured by rising oil prices and risk aversion.
US July CPI data due Wednesday is the key global trigger, with markets expecting 0.1% month-on-month headline growth and a 3.4% annual pace.
- Who
- Indian equity investors and traders, with market analysts such as Dr. VK Vijayakumar of Geojit Investments commenting on the session.
- What
- India's benchmark indices, the Nifty 50 and Sensex, opened nearly flat as elevated crude prices and anticipation of US inflation data kept trading cautious.
- Where
- India's stock markets (Nifty 50 and BSE Sensex); rising crude prices were driven by tensions around the Strait of Hormuz.
- When
- Wednesday, August 12, 2026, following a weak Tuesday session.
- Why
- Stalled negotiations over the Strait of Hormuz and fresh attacks on shipping kept Brent crude near $89–90 per barrel, while investors awaited key US CPI data.
Optimistic View
Cautious View
Strait of Hormuz outlook
Optimistic View
A senior Pakistani minister said the US and Iran were nearing 'some sort of arrangement,' suggesting tensions around the Strait could ease. Fitch Ratings affirmed India's sovereign rating at BBB- with a stable outlook, citing robust growth prospects.
Cautious View
Iran maintained the Strait would stay closed until its demands are met, keeping Brent crude elevated near $89–90 per barrel and constraining any market rally.
India's FY27 growth forecast
Optimistic View
State Bank of India projects FY27 GDP growth at 8%, which analysts say would make corporate earnings 'much better-than-expected.'
Cautious View
The Reserve Bank of India's official forecast is a more conservative 6.7% growth for FY27.
Key facts
- Nifty 50
- Opened 24,472.45; trading at 24,451.95, down 19.75 points (0.08%)
- Sensex
- Opened 78,263.33; trading at 78,127.07, down 27.18 points (0.03%)
- Brent crude
- Near $89–90 per barrel
- Indian rupee
- Closed Tuesday at ₹95.44, depreciating 14 paise
- FII buying (Tuesday)
- Net buyers of equities worth ₹258–259 crore
- US CPI expectation (July)
- 0.1% month-on-month headline growth; 3.4% annual pace
- FY27 GDP forecast
- State Bank of India projects 8% vs RBI's forecast of 6.7%
- Direct tax collection
- ₹8.11 trillion as of August 10, up 23% year-on-year
Quotes
Dr. VK Vijayakumar
Chief Investment Strategist at Geojit Investments
“"The principal factor restraining a rally is the strengthening Brent crude which has again moved above $89 level, this might keep crude prices elevated, constraining a rally in the market."”
thehindubusinessline.com
State Bank of India Representative
State Bank of India official
“"If this turns out to be true, corporate earnings for FY27 will be much better-than-expected."”
thehindubusinessline.com










