Markets open lower as Strait of Hormuz tensions push crude above $87
The Nifty 50 opened at 24,575.10, down from its previous close of 24,583.80; opened at 78,509.77 against its previous close of 78,542.44
Markets started lower on Tuesday, August 11, 2026, owing to crude oil prices surging and geopolitical uncertainties surrounding the Strait of Hormuz. The Nifty 50 opened at 24,575.10, slipping from its prior close of 24,583.80, while the Sensex opened at 78,509.77 against a previous level of 78,542.44 and declined by 286.01 points or 0.36 per cent.
The sell-off was widespread, although technology firms demonstrated relative strength. HCL Tech was among the top gainers in the Nifty 50, with a 1.43 per cent rise to ₹1,376.60, followed by Titan and Tech Mahindra, both up 1.34 per cent. Conversely, IndiGo experienced the largest drop, falling 2.04 per cent to ₹5,224.50. Bajaj Finance, Tata Consumer Products, Axis Bank, and Shriram Finance also saw declines.
The market's apprehension was primarily driven by rising crude oil prices, with Brent crude breaching the $87 per barrel mark and WTI climbing to $82 per barrel after President Trump demanded compensation from Iran, casting doubt on a swift resolution to the Strait of Hormuz issue. Energy price volatility could potentially hinder any significant gains in Indian equities unless geopolitical clarity surfaces.
Foreign institutional investors (FIIs) are now turning to buy stocks, buoyed by strong Q1 earnings and a stable rupee. They are shifting away from chip-related investments in South Korea and Taiwan, opting to compensate for underweight positions in Indian stocks. FIIs are targeting sectors like telecom, renewable energy, capital goods, and pharmaceuticals, rather than seeking undervalued banking stocks.
Some stocks, such as PSU banks and defense indices, underperformed on Monday. Technical analyst Shrikant Chouhan suggested that if the Nifty 50 and Sensex fall below 24,500 and 78,300 respectively, selling pressure could intensify, potentially leading to a retest of lower price bands. Other key events on the day included Q1 earnings from several companies, the debut of the Milky Mist Dairy Food IPO, stock splits for JSW Dulux and SP Apparels, AGMs for Bharat Forge and Alembic Pharma, and remarks from the RBI Governor at the IBA.
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