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Informist, Tuesday, Aug. 25, 2026

 

By Adhithya Aji

 

MUMBAI – Benchmark indices are expected to remain range-bound with a positive bias on Wednesday as investors remain cautious about developments in the US-Iran conflict and crude oil prices. Analysts view crude oil prices and US government bond yields as key drivers of market sentiment in the medium term.

"Any further spike in oil can create a negative sentiment on Indian markets in the medium to short term," Kranthi Bathini, equity strategist at WealthMills Securities Pvt. Ltd., said. "... this entire episode of the Middle East (West Asia) and its impact on crude oil prices is the crux for Indian markets in the medium to short term," Bathini said.

On foreign investor participation, Bathini said, the overseas participants are waiting for earnings recovery before investing in Indian markets. He said that India has its positives for the long term. "It's a strong consumption growth story, but the hot money has been chasing the momentum spaces across the Asia-Pacific," he said. Bathini said foreign investors are opting for markets with artificial intelligence and semiconductor stocks. If Indian markets can show traction with earnings recovery, markets can attract buyers in the long term, according to the analyst. However, he said a strong earnings recovery is unlikely until crude oil prices ease from current levels.

 

After the recovery on Tuesday, the Nifty 50 may see short-term gains, according to Rupak De, senior technical analyst at LKP Securities. Technical analysts see support for the index in the 24200-24000 range, while resistance is around 24400-24600. Tuesday, the Nifty 50 index closed at 24334.55 points, up 0.5% from Monday.

 

At 1701 IST, October Brent crude futures were nearly 3% lower at $89.68 per barrel. "The much-anticipated US sanctions against Iran fell short of market expectations, causing crude oil prices and bond yields to moderate from their recent peaks," said Vinod Nair, head of research at Geojit Investments, in a note. Nair added that the relief in energy prices aided a moderately positive close Tuesday on the monthly expiry day. Crude oil prices fell below $90 per barrel after seven sessions.

 

Market participants now await comments from the US Federal Reserve Chair this week at the Jackson Hole symposium for better clarity on the inflation and interest rate outlook. "However, near-term cautiousness is expected to continue for Indian equities as unresolved US-Iran tensions keep oil prices and bond yields relatively elevated, leaving investors sensitive to sudden shifts in the Middle East (West Asia) geopolitical landscape," Nair said.  End

 

US$1 = INR 95.41

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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