Pre-Market Update: Nifty 50 May Open Flat as Crude Oil, U.S.-Iran Tensions Weigh

The Indian benchmark indices, Sensex and Nifty 50, are likely to open on a flat note on Wednesday, August 12, as mixed global cues and weakness in U.S. equities are offset by concerns over rising crude oil prices and geopolitical tensions in the Middle East.

As of 7:27 AM, GIFT Nifty was trading around 24,550, indicating a discount of 34 points against the previous close of Nifty futures and signalling a muted start for the domestic market. Asian markets opened mixed, while U.S. stock futures declined for a second consecutive session.

Crude oil prices remained elevated amid uncertainty over a potential U.S.-Iran peace agreement and fresh attacks involving commercial vessels. Concerns over disruptions to crude supplies from the Middle East increased after separate attacks were reported near the Strait of Hormuz and the Bab el-Mandeb Strait. Brent crude futures rose 0.81 per cent to USD 89.63 a barrel, while West Texas Intermediate crude gained 0.85 per cent to USD 83.91 a barrel. Both benchmarks had gained more than USD 1 in the previous session and reached their highest closing levels since July 31. Oil prices had also climbed nearly 5 per cent on Monday as optimism surrounding a possible U.S.-Iran agreement weakened.

Geopolitical developments remain a key risk for global markets. The United States and Iran-aligned Houthi forces in Yemen reported separate attacks on commercial vessels on Tuesday, increasing concerns over the safety of important oil shipping routes. Iran's top security official Mohsen Rezaei said the Strait of Hormuz would remain closed until Washington accepts Tehran's conditions for ending the conflict. The demands reportedly include the unfreezing of Iranian assets and an end to other regional conflicts.

The ongoing Q1 FY27 earnings season will also remain in focus, with more than 470 companies scheduled to announce their April-June quarter results on Wednesday. Hindustan Aeronautics, Grasim Industries, Tata Motors, Lenskart Solutions, GMR Airports, IRCTC and Ircon International are among the prominent companies scheduled to report their quarterly numbers.

Gold prices remained largely steady as investors assessed developments surrounding the possible reopening of the Strait of Hormuz and awaited the July U.S. inflation data. Spot gold was down 0.1 per cent at USD 4,367.56 an ounce, while silver gained 0.1 per cent to USD 64.72 an ounce. Gold had retreated 0.5 per cent on Tuesday after touching a two-month high.

In the derivatives market, the Put-Call Ratio for the August 18 expiry stood at 0.85. On the put side, notable open interest addition was seen at the 24,500 strike, while significant open interest concentration was at 24,000. On the call side, substantial open interest addition was recorded at 24,500, with major open interest concentration at the 25,000 strike.

The Nifty 50 ended Tuesday at 24,471.70 after forming a sizeable bearish candle, reflecting selling pressure during a range-bound session. Immediate support is placed at 24,436, followed by 24,401 and 24,345. A decisive break below 24,345 could increase selling pressure, with the index potentially moving towards 24,350 and 24,200. On the upside, resistance is seen at 24,549, 24,584 and 24,640, while the broader resistance zone remains around 24,600-24,700. Although the index continues to trade above key moving averages, weakening momentum indicators point towards continued consolidation. A sustained move above 24,600 could improve sentiment, while a break below Tuesday's range may strengthen the bearish bias.

Stock-specific activity is expected to remain high. Bata India reported a 23.04 per cent YoY increase in consolidated profit to Rs 63.98 crore, while revenue rose 3.9 per cent to Rs 978.9 crore. The company also declared an interim Dividend of Rs 25 per share for FY27. Manappuram Finance reported more than a four-fold YoY increase in Q1 profit to Rs 584.6 crore, while net interest income rose 28.1 per cent to Rs 1,723.7 crore. Impairment on financial instruments declined 60.6 per cent to Rs 225.5 crore.

RHI Magnesita India reported an 83.2 per cent YoY increase in profit to Rs 64.6 crore, with revenue rising 5.6 per cent to Rs 1,014 crore. Tribhovandas Bhimji Zaveri posted a 50.8 per cent increase in profit to Rs 33.92 crore, while revenue jumped 34.8 per cent to Rs 840.97 crore. Landmark Cars more than doubled its profit, which rose 110.5 per cent YoY to Rs 14.5 crore, while revenue increased 22.7 per cent to Rs 1,302.4 crore.

PI Industries reported a 39 per cent YoY decline in profit to Rs 244.2 crore, while revenue fell 10.4 per cent to Rs 1,702.3 crore, making the stock notable following the weak quarterly performance. Linde India reported a 2.4 per cent decline in profit to Rs 104.6 crore despite a 21.6 per cent increase in revenue to Rs 694.4 crore. The company also appointed Vikash Dokania as CFO, effective September 15, 2026. JSW Dulux reported a 12.4 per cent decline in profit to Rs 79.7 crore, while revenue fell 2.8 per cent to Rs 965 crore.

Tenneco Clean Air India is also likely to remain in focus as promoter entity Tenneco Mauritius is reportedly looking to sell an 8 per cent stake through block deals, with an option to increase the transaction by another 2 per cent. The reported floor price is Rs 515 per share, with the base deal size estimated at around Rs 1,663 crore.

Zydus Lifesciences said its subsidiary Sentynl Therapeutics entered into an option and licence agreement with Mereo BioPharma covering U.S. commercialisation and global manufacturing rights for Alvelestat for AATD-LD. BEML secured an order worth Rs 184.25 crore from Hindustan Aeronautics for manufacturing and supplying Light Combat Helicopter fuselage aerostructures.

HG Infra Engineering received a letter of award from the Rajasthan government for the operation and management of the ITI Bhiwadi Cluster under PM-SETU. The company's share of the estimated Rs 241 crore project cost is 17.10 per cent. Larsen & Toubro executed a Business Transfer Agreement with its subsidiary Vyoma.AI to transfer its data centre and cloud services business for Rs 1,400 crore through a slump sale.

Godrej Consumer Products appointed Aasif Malbari as Managing Director and Chief Executive Officer with immediate effect, succeeding Sudhir Sitapati. KFin Technologies launched Klarity, an Agentic AI solution aimed at detecting skilled forgery and reducing wrongful rejection of legitimate behavioural signatures in financial institutions. Diamond Power Infrastructure secured two orders worth Rs 195.48 crore from Rajesh Power Services for supplying 11 kV medium-voltage underground power cables for PGVCL projects in Gujarat.

For the day, SAIL and Bandhan Bank are under the F&O ban.

Institutional activity was relatively subdued in the previous session. On August 10, Foreign Institutional Investors were net buyers of Indian equities worth Rs 258.55 crore, while Domestic Institutional Investors purchased shares worth Rs 24.77 crore.

The domestic market ended sharply lower on Tuesday as investors booked profits amid higher crude oil prices and continued uncertainty surrounding the reopening of the Strait of Hormuz and the possibility of a U.S.-Iran agreement. The Sensex declined 388 points, or 0.49 per cent, to close at 78,154.25, while the Nifty 50 fell 112 points, or 0.46 per cent, to settle at 24,471.70.

U.S. markets extended their losses for a second consecutive session on Tuesday as weakness in technology stocks weighed on sentiment and higher crude oil prices added to concerns. The Dow Jones Industrial Average fell 180 points after giving up more than 430 points from its Intraday high. The S&P 500 and Nasdaq Composite declined 0.3 per cent and 0.6 per cent, respectively.

Investors will now focus on the release of the U.S. Consumer Price Index data for July. The inflation reading will be closely watched for indications about the Federal Reserve's future interest-rate path. For Indian markets, movements in crude oil, developments around the Strait of Hormuz and U.S.-Iran tensions, global equity cues and the ongoing Q1 FY27 earnings season are likely to determine the near-term trend.

Disclaimer: The article is for informational purposes only and not investment advice.