Why Indian Stock Market Down Today? BSE Sensex Falls 0.68% While Nifty Slips Nearly 0.7% As Brent Crude Oil Prices Rise -What Investors Should Watch

Indian stock markets are under pressure today as crude oil prices above $90, geopolitical tensions and inflation concerns weigh on investor sentiment.

By: Nisha Srivastava
Last Updated: August 12, 2026 11:44:25 IST

India Stock Market Today (August 12, 2026): The Indian stock market is trading downwards because of rising Brent crude oil prices to $90 per barrel because of growing geopolitical unrest regarding the Strait of Hormuz. The rise in the price of crude oil will directly affect the economic stability of India in terms of increased import cost and core inflation worries.

India Stock Market Today (August 12, 2026): BSE Sensex And NSE Nifty Open Down Today

Indian benchmark indices remained steady to slightly lower in the opening session on Wednesday, August 12, 2026, while suffering further losses in midday trading due to rising global crude oil prices. According to reports, as on 11:25 AM IST, the BSE Sensex is trading at 77,625.36, which marks a fall of 528.89 points (-0.68%) as compared to the previous close. At the same time, the NSE Nifty 50 is trading at 24,307.

Why Is the Indian Stock Market Down Today? 

Cautious Trading Ahead of Inflation Data 

Global markets remain subdued as investors await key US Consumer Price Index (CPI) data and India’s latest inflation figures, both of which could influence expectations for interest rates and monetary policy.

Rupee Volatility

The Indian rupee is trading near ₹95.42 against the US dollar, with pressure stemming from elevated crude prices and continued foreign fund outflows.

Crude Oil Prices Remain the Biggest Concern

Brent crude has climbed above $90 per barrel amid ongoing US-Iran tensions and uncertainty surrounding the Strait of Hormuz. Higher oil prices could increase India’s import bill and add to inflationary pressures.

Middle East Tensions Keep Investors Cautious

Geopolitical developments are yet another important factor that influences market sentiment. The markets are still watching the developments between the US, Israel, and Iran, especially in connection with the Strait of Hormuz. Uncertainty makes the investors wary of risky assets. Any new developments that might disrupt oil supplies or shipping routes will increase the volatility of global and domestic markets.

Banking And Financial Stocks Remain Important

Financial stocks hold great significance in terms of movements in benchmark indices as financial institutions such as banks have considerable influence on the Sensex and Nifty index.

Consequently, poor performance of these heavyweights among banking and financial stocks may adversely affect the headline index even when other sectors have managed to hold their own.

It would, however, be too hasty to conclude that the overall market decline is due to weakness in the banking sector alone. There are a variety of factors driving the trend.

NSE Nifty 50 And BSE Sensex Down Today: Key Monitor Sectors For Investors and Stock Movers

  • Top Nifty Gainers: Hindalco Industries (+3.34%), Grasim Industries (+1.63%) and State Bank of India (+1.40%) are among the stocks providing some support to the benchmark.
  • Top Nifty Losers: Apollo Hospitals (-1.64%) and Dr. Reddy’s Laboratories (-1.10%) are among the notable decliners, while Godrej Consumer Products has come under significant pressure following the resignation of its CEO.
  • Sectoral Performance: Nifty Metal and Nifty PSU Bank are showing relative strength, while Nifty FMCG and Nifty IT remain in negative territory.

Indian Stock Market Today: What Investors Should Watch Today?

Looking ahead, investors will watch Brent crude prices, news from the Strait of Hormuz, the rupee/dollar exchange rate, foreign portfolio flows, and global interest-rate trends. In case Brent stays above $90 for an extended period, worries about the import bill and inflation could continue to affect sentiment. 

Disclaimer: This article is for informational purposes only and should not be considered investment advice, as stock markets are subject to market risks and can change rapidly.

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