Sensex, Nifty fall for 2nd day as crude oil prices weigh on markets
Synopsis
Indian benchmark indices logged back-to-back losses as crude oil prices stayed elevated and geopolitical uncertainty around the Strait of Hormuz rattled investor confidence. With the Nifty IT index down 1.54% and TCS among the top losers, the next move hinges on the US inflation print — which could either steady global markets or deepen the risk-off mood.
Key Takeaways
Sensex fell 187.90 points (0.24%) to close at 77,966.35 on 12 August .
Nifty50 shed 35.75 points (0.15%) to settle at 24,435.95 — a second straight day of losses.
Nifty IT was the worst sectoral performer, declining 1.54% ; TCS , Max Healthcare , and Apollo Hospitals were top Nifty losers.
Nifty PSU Bank bucked the trend, rising 2% to lead sectoral gains.
Elevated crude oil prices and Strait of Hormuz uncertainty drove caution; analysts flag 24,400 as a critical Nifty support level.
The upcoming US inflation report is the key macro trigger markets are tracking next.
The BSE Sensex and NSE Nifty50 extended their losing streak into a second consecutive session on Wednesday, 12 August, as elevated crude oil prices and uncertainty over a potential agreement to reopen the Strait of Hormuz kept investor sentiment firmly in check.
The Sensex declined 187.90 points, or 0.24%, to close at 77,966.35, while the Nifty50 shed 35.75 points, or 0.15%, to settle at 24,435.95.
What Drove the Decline
Rising crude oil prices remain the central concern for Indian equity markets. As one of the world's largest importers of crude, India is particularly vulnerable to sustained energy price increases, which can stoke inflationary pressures and widen the country's trade deficit — both headwinds for corporate earnings and consumer spending.
Geopolitical uncertainty around the Strait of Hormuz — a critical chokepoint for global oil shipments — added another layer of caution, with investors unwilling to take on fresh risk until the situation clarifies.
Top Losers and Sectoral Trends
Among Nifty50 constituents, Tata Consultancy Services (TCS), Max Healthcare Institute, and Apollo Hospitals Enterprise were the steepest losers, collectively pulling the benchmark lower. The Nifty IT index was the worst-performing sectoral gauge, falling 1.54% as technology stocks bore the brunt of selling pressure.
Not all sectors suffered, however. The Nifty PSU Bank index surged 2%, emerging as the session's top sectoral gainer and helping cushion broader market losses. The Nifty MidCap index also outperformed the frontline indices, rising 0.28%, while the Nifty SmallCap index slipped 0.18%.
Technical Outlook for Nifty
Market analysts flagged key technical levels to watch. According to one analyst, the Nifty 'continues to fall after slipping below 24,400, leading to a decline towards 24,250,' though it 'found support around the 200-hour SMA before staging a recovery' and has 'managed to close above the 20EMA' on the daily timeframe.
Looking ahead, the same analyst cautioned: 'A sustained fall below 24,400 on Thursday might again drag the index towards 24,180. On the higher end, 24,500 is likely to act as a crucial resistance, and a sustained move above this level might improve the trend.'
What Markets Are Watching Next
The upcoming US inflation report is the most closely tracked event on investors' calendars. According to a market expert, 'the outcome is expected to influence expectations for the Federal Reserve's policy direction and, in turn, shape sentiment across global financial markets.' A softer-than-expected print could ease pressure on risk assets globally, including Indian equities. Conversely, a hot reading may extend the current cautious tone well beyond this week.
Point of View
But the composition of the selloff is telling. IT stocks — India's most US-dollar-linked sector — are under pressure at the same time crude prices are rising, a double squeeze that hits both earnings visibility and the current account. The Strait of Hormuz angle deserves more attention than it is getting: any sustained disruption there would not just lift oil prices but could trigger a broader emerging-market risk-off. PSU banks outperforming on the same day suggests domestic institutional buying is providing a floor, but that support is unlikely to hold if the US inflation print surprises to the upside.
NationPress
12 Aug 2026
Frequently Asked Questions
Why did the Sensex and Nifty fall for a second straight day on 12 August?
The Sensex fell 187.90 points and the Nifty shed 35.75 points on 12 August primarily due to elevated crude oil prices and uncertainty over a potential deal to reopen the Strait of Hormuz, both of which dampened investor appetite for risk.
Which stocks and sectors were the biggest losers?
TCS, Max Healthcare Institute, and Apollo Hospitals Enterprise were the top Nifty50 losers. At the sectoral level, the Nifty IT index was the worst performer, declining 1.54% as technology stocks faced heavy selling pressure.
Were there any sectors that gained despite the broader market fall?
Yes. The Nifty PSU Bank index rose 2%, making it the top sectoral gainer of the session. The Nifty MidCap index also outperformed, rising 0.28%, even as the frontline indices closed lower.
What are the key technical levels for Nifty that traders should watch?
Analysts have identified 24,400 as a critical support level — a sustained break below it could pull the Nifty towards 24,180. On the upside, 24,500 is seen as a key resistance; a decisive move above it could improve the near-term trend.
What is the next major event that could move Indian markets?
The US inflation report is the most closely watched upcoming data point. Its outcome is expected to shape expectations around the US Federal Reserve's policy direction, with knock-on effects for global and Indian market sentiment.
