India Nifty’s Gains Look Fragile on Soaring Crude, HDFC Bank Board Exit

Good morning...

I’m Ashutosh Joshi in Mumbai. The odds are against the market extending its three-day winning streak? Read on to find out.

Indian equities are poised for a sharp drop at the open after Brent crude surged past $110 a barrel and the part-time chairman of HDFC Bank — which has the Nifty’s heaviest weight — resigned, citing ethical differences. The broader backdrop has turned grim: Asian markets are down as oil prices jumped following Iran’s attacks on key energy infrastructure in the Middle East, heightening fears that an escalating conflict could stoke inflation further.

The rupee also hit a fresh low on Wednesday. Adding to the uncertainty, Federal Reserve Chair Jerome Powell noted that the conflict has clouded the inflation outlook, even as policymakers held rates steady and signaled just one cut in 2026. Analysts say the near-term mood remains cautious.