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Indian Markets Slip as Strait of Hormuz Standoff Keeps Oil Near $89

High oil prices raise the risk of higher inflation, a weaker rupee, squeezed corporate margins as investors await Fed minutes.

The Federal Reserve building is set against a blue sky in Washington, U.S., May 1, 2020. REUTERS/Kevin Lamarque/File Photo
Specialist Michael Pistillo works on the floor of the New York Stock Exchange, Wednesday, Aug.. 5, 2026, in New York. (AP Photo/Yuki Iwamura)
A person walk in front of an electronic stock chart board showing Japan's Nikkei index at a securities firm Thursday, Aug. 13, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)
People walk past the Nasdaq MarketSite, Thursday, Aug. 6, 2026, in New York. (AP Photo/Yuki Iwamura)

Overview

  • Markets opened lower on Monday after benchmarks retreated last week, with the Sensex falling as much as about 455 points intraday and the Nifty trading near 24,250 following a week that closed around Sensex 78,009 and Nifty 24,366.
  • Geopolitical risk remains elevated because Iran has asserted control over the Strait of Hormuz and tanker attacks plus restricted traffic have kept Brent crude around $88–89 per barrel.
  • Foreign flows turned positive in mid‑August as FPIs put in roughly Rs 16,621 crore in the first fortnight and FIIs were net buyers of about Rs 1,228 crore in the latest week, while domestic institutional investors continued steady buying near Rs 9,286 crore.
  • Brokers warn sustained high crude will raise India’s oil import bill and inflation, pressure the rupee and squeeze corporate margins, which in turn is weighing on investor sentiment and limiting market gains.
  • Technicians say the near term is likely to stay cautious and range‑bound with Nifty resistance around 24,600 and support in the 24,200–24,350 area ahead of the US Federal Reserve minutes due later this week.