3 weeks ago

Markets Open Flat as Crude Nears $90, Inflation in Focus

Markets Open Flat as Crude Nears $90, Inflation in Focus
Markets open flat as crude stays near $90, inflation data in focus · thehindubusinessline.com

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.

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

Sources

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