Sensex Falls Over 200 Points As Rising Oil Prices, Middle East Tensions Weigh On Markets

Rising crude prices, uncertainty over the Strait of Hormuz and weak global cues weighed on investor sentiment, although strong domestic macro indicators limited the decline

Outlook Business Desk

Curated by: Satyam Mishra

Published At: 12 August 2026 9:51 am

Sensex

Summary of this article

Sensex and Nifty turned lower as Brent crude approached the $90 mark.
Rising oil prices and Middle East tensions weighed on overall market sentiment.
Strong tax collections and Fitch's stable India outlook supported domestic confidence.

Indian benchmark indices erased early gains and slipped into the red on Wednesday as Brent crude climbed towards $90 a barrel amid escalating geopolitical tensions in the Middle East, dampening investor sentiment.

At 9:26 am, the BSE Sensex was down more than 200 points to around 78,000, while the NSE Nifty 50 slipped below the 24,250 mark. Broader markets, however, remained resilient, with the Nifty Midcap 100 and Nifty Smallcap 100 posting marginal gains.

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Among Sensex constituents, Tech Mahindra, UltraTech Cement, Eternal and Bharat Electronics gained nearly 1% each, while Trent led the losses, declining around 0.6%.

Sectorally, the Nifty Metal index rose more than 0.5% to emerge as the top gainer, while Nifty FMCG declined over 0.3%. Market breadth remained positive, with 1,408 stocks advancing against 830 declines on the NSE, while 173 stocks were unchanged.

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BY Outlook Business Desk

Crude Oil, Global Cues Keep Markets Under Pressure

Investor sentiment remained cautious as Brent crude traded above $89 a barrel, approaching the $90 mark, amid persistent uncertainty surrounding US-Iran tensions and the reopening of the Strait of Hormuz. Elevated oil prices remain a key risk for India, given the country's dependence on crude imports and the potential impact on inflation and corporate margins.

Global cues were also mixed. Wall Street ended lower overnight, with the S&P 500 and Dow Jones declining around 0.3% each, while the Nasdaq fell 0.6% ahead of US inflation data. In Asia, Japan's Nikkei 225 traded lower, whereas South Korea's Kospi gained more than 2%.

Domestic Fundamentals Remain Supportive

Despite global headwinds, domestic macroeconomic indicators continued to provide support. Net direct tax collections rose 23.09% to over ₹8.11 lakh crore through August 10, while Fitch Ratings reaffirmed India's sovereign rating at BBB- with a Stable Outlook, citing sustained public capital expenditure, recovering private investment and favourable demographics.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the market continues to move in a narrow range as higher crude oil prices remain the key obstacle to a sustained rally.

He noted that Brent crude moving above $89 a barrel, amid continued US-Iran tensions and uncertainty over the Strait of Hormuz, is likely to keep markets under pressure. However, he added that India's growth outlook continues to improve, pointing to SBI's projection of 8% GDP growth for FY27 against the RBI's 6.7% forecast, which, if realised, could support stronger-than-expected corporate earnings. He also highlighted continued stock-specific action in the mid- and small-cap segments driven by earnings and company-specific developments.