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Crude Below $80, Hormuz Deal Hopes Drive Sensex, Nifty Cues
Stock markets are places where people buy and sell small pieces of companies, called shares.
These two news reports are about what happened in India's stock markets on August 5 and 6, 2026.
A signal called GIFT Nifty predicted that Indian markets would start with a big jump on one day and a very quiet start the next day.
The excitement came because the price of crude oil fell below $80 a barrel.
Oil became cheaper after the US said it would reopen the Strait of Hormuz, a busy waterway that ships use to carry oil.
When oil is cheaper, companies spend less on fuel, and investors feel happier about buying shares.
In the US, one big stock index called the S&P 500 reached a new record high after this news.
In India, the prices of gold and silver also went up a little on one of the days.
People are also watching the Reserve Bank of India, which decides how cheap or expensive it is to borrow money.
Experts expect the Bank to keep rates unchanged for now because of worries about inflation from bad weather and the war in West Asia.
GIFT Nifty indicated a 149-point (0.80%) gap-up start for Indian markets on August 5 and a flat start, up 11 points (0.04%), on August 6.
Crude slid below $80 after US Treasury Secretary Scott Bessent said a Hormuz Strait deal is likely this week, with West Texas Intermediate (WTI) near $75 and Brent near $79 per barrel.
On August 4, US stocks hit a fresh high: S&P 500 gained 1.79% to 7,736.52, Nasdaq rose 2.59%, and the Dow surged 907.47 points on news of the Strait of Hormuz reopening.
On August 5, the Nifty 50 closed 0.04% higher at 24,625 and the BSE Sensex closed 0.19% higher at 78,581.
Investors are awaiting the RBI's three-day Monetary Policy Committee meeting, with experts expecting a rate hold due to inflation risks from El Niño and the war in West Asia.
- Who
- Investors in India, Asia and the US; US Treasury Secretary Scott Bessent; and the RBI's Monetary Policy Committee.
- What
- Indian stock markets, tracked by the Sensex and Nifty, followed global cues as crude oil slid below $80 on hopes of a Hormuz Strait reopening deal this week.
- Where
- India, the US, Asia-Pacific markets, and the Strait of Hormuz.
- When
- August 4-6, 2026, covering the market sessions of August 5 and August 6.
- Why
- Optimism over a possible Hormuz Strait deal this week and falling crude prices lifted market sentiment, while inflation risks from El Niño and the war in West Asia kept the RBI in wait-and-watch mode.
Key facts
- GIFT Nifty signal (Aug 5)
- Up 149 points (+0.80%)
- GIFT Nifty signal (Aug 6)
- Up 11 points (+0.04%)
- Nifty 50 close (Aug 5)
- 24,625, +0.04%
- BSE Sensex close (Aug 5)
- 78,581, +0.19%
- S&P 500 close (Aug 4)
- 7,736.52, fresh high, +1.79%
- Oil prices (Aug 6)
- WTI $75.19; Brent $79.54 per barrel, below $80
- 24-carat gold in India
- Rs 1,48,510 per 10 grams, +3.12%
- Silver in India
- Rs 2.27 lakh per kilogram, +2.8%









