Fading hopes of a U.S.-Iran deal and a sharp rebound in crude oil prices brought Indian equity markets to red on Tuesday, as renewed fears of supply disruptions through the Strait of Hormuz overshadowed a broadly encouraging domestic earnings season.The Sensex declined 388.19 points or 0.49 per cent to settle at 78,154.25, while the Nifty 50 fell 112.10 points or 0.46 per cent to close at 24,471.70, slipping below the psychologically significant 24,500 mark.The Nifty hit an intraday low of 24,429.25 before recovering partially, though the index ultimately closed near the day’s lows. Market breadth remained weak, with 296 of the Nifty 500 stocks closing in the red and the Advance-Decline ratio favouring decliners at 1.3:1.“A sharp rebound in crude prices shifted market attention back to inflation risks, tempering investor enthusiasm despite a supportive earnings backdrop,” said Vinod Nair, Head of Research at Geojit Investments. “...Concerns over the disruptions in the Strait of Hormuz and the U.S.-Iran negotiations kept sentiment guarded, particularly ahead of key inflation prints in India and the U.S.”The dominant headwind through the session was crude oil. Brent climbed to a one-week high near $89–90 per barrel after U.S. President Donald Trump complicated negotiations by demanding compensation for those killed during the conflict, clouding prospects for an early resolution.International benchmark WTI crude rose more than 3 per cent to around $84.5 a barrel. The prospect of prolonged supply disruptions weighed particularly hard on an oil-importing economy like India, reigniting concerns over imported inflation, the current account, and corporate margins.Weekly F&O expiry added to the turbulence. The Nifty formed a small bearish candlestick and has now traded within a narrow range for four consecutive sessions, reflecting an absence of strong directional conviction. The daily RSI eased to around 56 and is trending lower, signalling moderating momentum.On the technical side, the 200-day EMA at approximately 24,350–24,385 remains a key support to watch; a sustained break below that level could open the door to 24,100–24,000.Sectorally, Nifty Pharma rose 1 per cent and Nifty IT gained 0.6 per cent, supported partly by strong quarterly numbers from Gland Pharma and a solid showing from Zydus Lifesciences, whose Q1 revenue rose 22 per cent to ₹8,017 crore. Nifty Realty, FMCG, and Metal each fell around 1 per cent, while Banking, Auto, and Infrastructure also closed in the red. Dr. Reddy’s Laboratories and Eternal were among the Nifty’s top individual gainers; Tata Consumer Products and Max Healthcare lagged.The broader market showed relative resilience. The Nifty Midcap 100 ended nearly flat, down just 0.02 per cent, while the Nifty Smallcap 100 gained 0.2 per cent.The rupee weakened around 15 paise to 85.43 against the dollar, pressured by elevated crude prices and a rebound in the U.S. Dollar Index from near the 99.50 support level. “Going forward, the currency will take cues from crude oil, the Dollar Index and FII flows, with US inflation data also likely to influence the dollar,” said Jateen Trivedi of LKP Securities, who sees the near-term rupee range at 95.25–95.75.Gold had a volatile session. MCX Gold opened near ₹1,55,000 before profit-booking dragged it towards ₹1,53,200. COMEX Gold faced resistance near $4,430 and slipped towards $4,375. “Market focus remains firmly on the US CPI data, which will be crucial for the Federal Reserve’s policy outlook,” Trivedi added.On the regulatory front, SEBI is examining trades from the August 3-4 closing auction session following sharp Nifty jumps, to check for possible price manipulation.Asian markets were mixed, South Korea’s Kospi advanced, while Hong Kong’s Hang Seng and China’s Shanghai Composite closed lower. European equities also traded in negative territory through the afternoon as the crude spike renewed inflation worries globally.All eyes now turn to Wednesday’s India CPI and U.S. CPI data, which are expected to set the tone for global interest-rate expectations. Key Q1FY27 earnings from Hindustan Aeronautics, Grasim Industries, Tata Motors, and Apollo Hospitals are also due. Benchmark indices are likely to remain range-bound, with broader markets dependent on stock-specific triggers from the final leg of the earnings season.Published on August 11, 2026