Stock Market Open Report, August 12, 2026: Sensex, Nifty Decline in Early Trade After Lower Start as Oil Weighs

Mumbai, August 12: Indian benchmark indices started Wednesday’s session on a lower note as elevated crude oil prices and caution ahead of key U.S. inflation data weighed on sentiment. However, broader market participation remained relatively balanced, with more than 1,600 stocks advancing in early trade. 

As of writing, the Sensex was down 0.3% while the Nifty declined the same. As many as 1,693 shares advanced, against 1,344 declines, while 173 stocks were unchanged. 

Hindalco, SBI Among Nifty Gainers 

Hindalco, Nestle India, SBI, Grasim Industries and Tech Mahindra were among the major gainers on the Nifty in early trade. Strength in metal and energy stocks provided some support to the benchmarks even as the broader market remained cautious. 

On the other hand, Dr. Reddy’s Laboratories, Max Healthcare, Apollo Hospitals Enterprise, Jio Financial Services and Tata Consumer Products were among the notable laggards. 

Crude Oil, US Inflation Data In Focus 

Crude oil remained a key headwind for Indian equities, with Brent crude hovering close to the $90-a-barrel mark as doubts over a U.S.-Iran deal intensified and concerns over supply disruptions through the Strait of Hormuz persisted. 

Higher crude prices are a concern for India because of the country’s heavy dependence on oil imports. A sustained rise in energy costs could put pressure on the rupee, inflation and corporate margins, particularly for fuel-intensive sectors. 

Investors are also awaiting U.S. inflation data, which could influence expectations around the Federal Reserve’s interest-rate trajectory. A softer-than-expected reading could support global equities by strengthening hopes of monetary easing, while a hotter print could weigh on risk appetite. 

Stocks In Focus 

Godrej Consumer Products fell over 9% after the company appointed Chief Financial Officer Aasif Malbari as CEO and managing director for a five-year term following Sudhir Sitapati’s resignation. 

Manappuram Finance declined over 1% after the non-bank lender reported a better-than-expected first-quarter profit, supported by strong growth in its gold-loan business and a recovery in microfinance. 

Asian Markets Mixed 

Asian equities traded on a mixed footing in early Wednesday trade as investors weighed gains across some regional markets against persistent concerns over elevated crude oil prices. 

Japan’s Nikkei 225 edged up 0.6%, while South Korea’s Kospi surged 4.6%. MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.8%, pointing to relatively firm risk appetite despite ongoing geopolitical uncertainty. 

The gains came as investors continued to monitor developments around the Strait of Hormuz, where uncertainty over the resumption of shipping has kept energy markets on edge. A prolonged disruption could tighten global oil supplies and add to inflationary pressures, particularly for major energy-importing economies. 

Wall Street Ends Lower 

U.S. stocks ended lower on Tuesday as investors turned cautious amid limited progress in U.S.-Iran negotiations and another rise in crude oil prices. 

The S&P 500 and Nasdaq came under pressure from weakness in major technology stocks, while energy shares advanced as higher oil prices improved the sector’s earnings outlook. The divergent performance highlighted the market’s growing sensitivity to geopolitical risks and their potential impact on inflation and corporate profitability. 

Attention now shifts to U.S. inflation data, which could provide fresh clues on the Federal Reserve’s monetary policy trajectory. Persistent strength in energy prices could make the inflation battle more difficult and temper expectations of aggressive interest-rate cuts if higher fuel costs filter through to the broader economy. 

European Stocks Hold Near Record Levels 

European equities remained resilient on Tuesday, with the pan-European STOXX 600 ending almost flat and staying close to record highs. 

Energy stocks led the advance as the rise in crude prices boosted the sector, with the European energy index climbing 1.7%. Technology stocks also gained 1.1%, helping offset weakness across other parts of the market. 

European shares have received support from optimism surrounding the earnings season, with expectations of strong second-quarter profit growth providing a cushion to sentiment. Investors, however, remain mindful of the potential impact of higher energy costs on the broader economy. 

A sustained oil rally could push inflation higher and complicate the outlook for interest-rate cuts by European central banks, making crude prices a key risk for equities in the region. 

Market Outlook 

With the Nifty slipping below 24,400 in early trade, market participants are likely to remain cautious and track developments in oil, the rupee and global markets. 

While the breadth remained relatively positive in early trade, sector-specific moves are likely to drive the session. Oil-sensitive sectors could remain under pressure, while metal and upstream energy stocks may find support from stronger commodity prices. 

Source

• NSE
• BSE