Sensex down 728 pts, Nifty slips 220 pts as Israel-Iran conflict rattles markets
The Indian stock market experiences a sharp decline as geopolitical tensions escalate between Israel and Iran on June 13, 2025. The fresh conflict adds pressure to global markets, leading to higher crude oil prices and increased investor caution.
Geopolitical Tensions Weigh on Markets
Early Friday, reports emerged that Israel had launched a preemptive strike on Iran’s capital, Tehran, targeting nuclear facilities. This unexpected military action intensifies tensions in the Middle East, sending shockwaves across global financial markets. The rising geopolitical uncertainty pushes investors towards risk-off sentiment, resulting in broad sell-offs.
The conflict triggers a spike in crude oil prices. The benchmark WTI Crude trades sharply higher at $73.95 per barrel, marking an 8.69% surge. The sharp rise in oil prices raises concerns about inflationary pressures, potentially impacting corporate profits and consumer spending worldwide.
Sensex and Nifty50 Under Pressure
At present, both benchmark indices, Sensex and Nifty50, are trading lower. The BSE Sensex recovers slightly from its early lows but remains down by 728 points, or 0.91%, currently quoting at 80,964. The Nifty50 also trades 220 points, or 0.88%, lower at 24,667.
The market faces broad-based selling across sectors, with only a few stocks managing to stay in the green. The heightened tensions and rising oil prices weigh heavily on investor sentiment, driving indices into negative territory for most of the trading session.
Performance of Sensex Constituents
On the Sensex, nearly all stocks trade in the red. Tech Mahindra stands as the sole gainer in the 30-share index. The selling pressure is visible across banking, financials, auto, and energy stocks, reflecting the market’s cautious approach amid uncertain global developments.
Major losers on the Sensex include heavyweights such as HDFC Bank, ICICI Bank, Reliance Industries, and Infosys. The pressure on banking and financial stocks adds to the market weakness, while oil-related stocks face headwinds from rising crude prices and global uncertainty.
Nifty50 Stock Movement
Nifty50 paints a similar picture, with 44 out of 50 stocks trading in negative territory. Despite the widespread selling, a few stocks manage to resist the downturn. ONGC, BEL, Tech Mahindra, Wipro, Apollo Hospitals, Dr Reddy’s, and HCL Tech trade in the green, showing resilience amid market turbulence.
The gain in ONGC reflects optimism around rising crude oil prices, which may support profitability for oil exploration companies. Tech stocks like Wipro, Tech Mahindra, and HCL Tech also hold ground, benefiting from the broader strength in the IT sector despite global uncertainty.
Broader Markets Mirror Benchmark Indices
Broader market indices also remain under pressure but manage to recover slightly from the day’s lows. The Nifty SmallCap and Nifty MidCap indices trade down by 0.3% each. The decline in mid- and small-cap stocks mirrors the cautious sentiment seen in the large-cap space.
Investors continue to adopt a wait-and-watch approach, with heightened focus on global geopolitical developments and their potential impact on market stability.
Sector-Wise Performance
Among sectoral indices, the Nifty IT index becomes the first to turn positive during the session, offering some support to the market. Technology stocks benefit from expectations of stable demand for IT services and possible safe-haven buying.
Other sectors, however, face significant selling pressure. The Nifty Oil and Gas, PSU Bank, and Auto indices fall sharply, declining up to 1.5% as market participants react to the conflict-driven rise in oil prices and broader economic concerns.
IT Sector Shows Resilience
The Nifty IT index manages to stay in positive territory as investors seek relatively safer sectors amid global turmoil. Stocks like Tech Mahindra, Wipro, and HCL Tech contribute to the sector’s strength, providing some cushion to the falling market.
Oil and Gas Under Pressure Despite Oil Surge
Despite the sharp rise in crude oil prices, the Nifty Oil and Gas index trades lower. While upstream companies like ONGC gain from higher oil prices, downstream companies face concerns over input cost inflation and reduced margins due to higher crude prices.
Banking and Auto Stocks Decline
Banking stocks suffer losses as the conflict-driven uncertainty prompts selling in financials. HDFC Bank, ICICI Bank, Axis Bank, and State Bank of India witness declines. The Auto sector also weakens, with concerns about higher input costs stemming from elevated oil prices.
Crude Oil Prices Surge
The most notable move in the global commodities market is the sharp rise in crude oil prices. WTI Crude currently trades at $73.95 per barrel, recording an 8.69% increase. The surge comes after the news of Israel’s preemptive strike against Iran’s nuclear facilities, raising fears of supply disruptions in the oil-rich Middle East.
The rise in oil prices adds further inflationary pressure on global economies, including India, which is heavily dependent on oil imports. Higher oil prices could translate into increased transportation and manufacturing costs, eventually affecting consumer prices and corporate margins.
Global Market Reaction
Global equity markets mirror the nervous sentiment seen in Indian markets. Asian indices trade mostly lower, reflecting fears of a wider conflict in the Middle East. European markets open in the red as well, while US futures indicate a weak start for Wall Street.
Investors globally remain focused on developments in the Israel-Iran conflict. Any escalation could have widespread consequences for energy markets, global trade, and financial stability.
Currency and Bond Market Updates
The Indian rupee also experiences weakness amid rising global uncertainty and higher oil prices. The local currency trades lower against the US dollar, reflecting concerns over the country’s oil import bill and foreign fund outflows.
In the bond market, yields edge higher as investors seek safety in government securities. The 10-year government bond yield rises, signaling cautious investor sentiment and expectations of potential inflationary pressures due to rising oil prices.
Market Outlook
The near-term outlook for the Indian stock market remains cautious as geopolitical tensions continue to dominate headlines. The market remains highly sensitive to developments in the Israel-Iran conflict. Any further escalation could lead to increased volatility and further downside risks.
Investors are also closely monitoring global crude oil prices, currency movements, and foreign institutional investor (FII) activity, which are likely to influence market direction in the coming sessions.
The Indian stock market trades lower on Friday, June 13, 2025, as rising geopolitical tensions between Israel and Iran send shockwaves across global financial markets. The Sensex and Nifty50 both witness significant declines, with most sectors trading in the red. Only a few stocks in the IT and oil exploration segments manage to resist the broad-based selling.
Rising crude oil prices add further pressure on inflation and corporate margins, contributing to the cautious market sentiment. Global markets remain volatile as investors watch for further developments in the conflict.
The market continues to operate under a cloud of uncertainty, with geopolitical events and oil price movements expected to drive investor sentiment in the near term.
