Mumbai, Aug. 14 -- Dalal Street heads into the new week navigating a difficult confluence of global and domestic headwinds, with investor sentiment remaining guarded amid a re-escalating Hormuz crisis and a weakening US labour market.

At the macro level, the energy overhang remains the most pressing concern. Brent traded at $87.18 per barrel on 14 August, up over 32% year-on-year, as attacks on shipping in the Strait of Hormuz continued to derail reopening negotiations. The US Energy Information Administration has warned that Middle East oil production is unlikely to return to near pre-conflict levels until early 2027.

For India, crude at these levels keeps import costs elevated, widens the current account deficit, and sustains pressure...