26 Aug 2026 Punjab Khabarnama Bureau : Indian stock markets opened higher on August 26, as a sharp decline in crude oil prices improved investor sentiment and eased concerns over inflation and energy costs.
The Sensex opened 226 points higher at 77,882.43, while the Nifty 50 was nearly flat at 24,338.15 in early trade.
Crude Oil Prices Slide
The key trigger for the improved sentiment was falling crude oil prices.
Brent crude dropped 2.6% to around $86.30 per barrel, extending the previous session’s decline. The fall came amid hopes that developments involving Iran and Oman could help ease disruption risks around the strategically important Strait of Hormuz.
Why Lower Oil Prices Matter for India
India imports a large share of its crude oil requirements, making international oil prices an important factor for the country’s economy and financial markets.
Lower crude prices can ease the import bill, reduce inflationary pressure and support the rupee. They can also improve the outlook for companies that are sensitive to fuel and transportation costs.
Banking Stocks Lead Gains
Banking stocks were among the stronger performers in early trade.
SBI Life, ICICI Bank, SBI, Axis Bank and Kotak Mahindra Bank were among the early gainers, while the Nifty PSU Bank index gained around 1.5%.
Oil marketing companies also benefited from the decline in crude, with BPCL, HPCL and Indian Oil gaining around 1.5% in early trading.
Global Markets Provide Support
Global cues were also supportive.
Asian stocks advanced as investors welcomed lower oil prices and declining US Treasury yields. The US 10-year Treasury yield stood around 4.634% after falling sharply in the previous session.
US stocks had also ended higher on Tuesday, helped by falling oil prices and easing pressure in the bond market.
Sensex and Nifty Remain Volatile
Despite the positive opening, trading remained volatile.
By around 10:54 am, the Sensex was up about 165 points, while the Nifty had slipped marginally below its previous close, showing that investors remained cautious despite the favourable crude-price trend.
Investors Watch Iran and Hormuz Developments
Markets are closely tracking developments around the Strait of Hormuz, a critical route for global oil supplies.
Any signs of reopening or improved navigation could further ease concerns over supply disruptions and potentially keep crude prices under pressure. A reversal, however, could quickly revive worries about inflation and energy costs.
Nvidia Earnings in Focus
Apart from oil, global investors are also watching Nvidia’s quarterly earnings, which could influence sentiment toward technology and semiconductor stocks.
The results are particularly important because investors are assessing whether the global artificial-intelligence spending boom can continue supporting technology valuations.
Foreign Investor Flows Support Sentiment
Foreign portfolio investors remained net buyers of Indian equities for a second consecutive session on Tuesday, purchasing shares worth around Rs 1,594 crore.
Domestic institutional investors also remained buyers, recording inflows of about Rs 230 crore, according to provisional NSE data.
Market Outlook
For Indian equities, the immediate focus remains on crude oil prices, developments in the Middle East, global bond yields and foreign fund flows.
If oil prices continue to decline, the trend could provide some relief to India’s inflation, currency and corporate-cost outlook. However, geopolitical uncertainty could keep volatility elevated.