18 Aug 2026 Punjab Khabarnama Bureau : Indian stock markets fell in early trade on August 18, as a sharp rise in crude oil prices and renewed tensions between the US and Iran weighed on investor sentiment.
Sensex, Nifty Open Lower
The Nifty 50 fell 0.27% to 24,219.80, while the BSE Sensex declined 0.40% to 77,418.06 in early trade.
The broader market also remained under pressure, with mid-cap stocks falling around 0.5%.
Crude Oil Crosses $91
Brent crude climbed above $91 per barrel, reaching about $91.14 in early Asian trade.
The jump followed growing concerns over oil supplies after the temporary US-Iran ceasefire expired and prospects for an immediate diplomatic settlement weakened.
Why Rising Oil Prices Hurt Indian Markets
India is heavily dependent on imported crude oil. A sustained rise in international oil prices can increase the country’s import bill and put pressure on the rupee, inflation and corporate profit margins.
Higher energy costs can be particularly challenging for industries that rely heavily on fuel and transportation.
IT Stocks Lead Declines
The IT sector was among the biggest drags, falling about 1.4% in early trading.
Financial services, realty and other rate-sensitive sectors also faced selling pressure as investors remained cautious.
Some Stocks Gain
Despite the broader weakness, select sectors including oil and gas, auto and pharma advanced.
ONGC, Mahindra & Mahindra and Maruti Suzuki were among stocks showing gains in early trade.
Foreign Fund Outflows Add Pressure
Foreign investors also remained cautious. Foreign portfolio investors reportedly withdrew around ₹2,535 crore ($265 million) from Indian equities, marking their largest outflow in three weeks.
Rupee Also Under Pressure
The rise in crude prices added pressure to the rupee, which weakened 7 paise to ₹95.68 per US dollar in early trade.
A weaker rupee can further increase the domestic cost of imported crude.
Market Outlook
Investors are likely to closely track developments in the Middle East, crude oil prices, foreign fund flows and the rupee.
Any further escalation that threatens energy supplies through the Strait of Hormuz could keep volatility elevated in Indian equities.