Indian equity markets are expected to open on a cautious note on Wednesday, with higher crude oil prices, geopolitical uncertainty and weak global cues weighing on sentiment ahead of key US inflation data.
Indian equity markets are likely to open flat on Wednesday amid weak global cues. Gift Nifty at 24,542.50 indicates a flattish opening for Indian stocks. The rebound in crude oil prices continues to impact the sentiment of Indian stock markets, said analysts.The dominant headwind for the market remained the renewed surge in global oil prices. “The prospect of elevated energy costs weighed on risk appetite, particularly in an oil-importing economy such as India,” said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth. Market attention now shifts to the U.S. Consumer Price Index (CPI) data due on Wednesday, which is expected to provide fresh direction for global interest-rate expectations and broader market sentiment.Meanwhile, India reported healthy tax collections. The net direct tax collection grew 23.09 per cent to over Rs 8.11 lakh crore till August 10 in the current fiscal. The net corporate tax collection rose 19.83 per cent to about Rs 2.70 lakh crore, while non-corporate tax collection (which includes personal income tax) mop-up rose 23 per cent to Rs 5.07 lakh crore. Securities Transaction Tax (STT) revenues grew 51 per cent to Rs 33,824 crore till August 10.Further, Fitch Ratings said India’s economic growth is expected to remain resilient despite near-term headwinds from the energy shock, with public capital expenditure, a recovery in private investment, and favourable demographics supporting medium-term expansion, while affirming India’s sovereign rating at ‘BBB-‘ with a Stable Outlook.Ponmudi R, CEO of Enrich Money, said Indian equity markets are expected to trade with a cautious undertone as persistent uncertainty surrounding the U.S.-Iran negotiations continues to weigh on investor sentiment. Overnight cues from Wall Street were subdued, with the S&P 500 and Dow Jones Industrial Average each declining about 0.3%, while the Nasdaq Composite slipped 0.6%, as investors turned cautious ahead of Wednesday’s U.S. consumer price inflation data and amid the continuing stalemate between Washington and Tehran over the reopening of the Strait of Hormuz.Asian markets are trading mixed, with Japan’s Nikkei 225 edging marginally lower, while South Korea’s Kospi is up more than 2% in early trade, providing some support to regional sentiment. Even so, elevated crude oil prices, lingering geopolitical uncertainty, and mixed global cues are likely to keep investors cautious.Published on August 12, 2026
