The Sensex dropped 213 points, closing at 81,583, while the Nifty 50 fell below 25,000 amid escalating Iran-Israel tensions
Market Decline Amid Geopolitical Uncertainty
Sensex Slips – Indian stock markets witnessed a sharp decline on June 17, 2025, as geopolitical tensions between Iran and Israel rattled investor sentiment.
The Sensex fell 213 points, closing at 81,583, while the Nifty 50 dropped 93 points, settling at 24,853.
The fall was led by pharma stocks, with Dr. Reddy’s Labs, Sun Pharma, and Cipla among the worst performers. Metal and media stocks also saw losses, contributing to the market downturn.
“Investors are cautious amid escalating Middle East tensions. The uncertainty surrounding global trade and oil prices is weighing on sentiment,” said Ajit Mishra, SVP – Research, Religare Broking Ltd.
The Iran-Israel conflict entered its fifth day, with Israel expanding its air campaign against Tehran. U.S. President Donald Trump warned residents of Tehran to evacuate, further fueling market jitters.
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Key Market Movers and Sectoral Performance
Top Losers:
- Dr. Reddy’s Labs (-2.1%)
- Sun Pharma (-1.8%)
- Cipla (-1.5%)
- Adani Enterprises (-1.6%)
- ONGC (-1.3%)
Top Gainers:
- Tech Mahindra (+1.66%)
- Infosys (+1.2%)
- Asian Paints (+0.9%)
- TCS (+0.8%)
- Maruti Suzuki (+0.7%)
While pharma, metal, and auto stocks saw declines, IT stocks bucked the trend, benefiting from a stronger U.S. dollar and optimism ahead of the Federal Reserve’s policy decision.
“The IT sector remained the only bright spot, buoyed by a stronger dollar and expectations of stable interest rates,” said Vinod Nair, Head of Research at Geojit Financial Services.
Global Factors Driving Market Sentiment
1. Iran-Israel Conflict: The Middle East crisis has led to rising oil prices, impacting global trade and inflation expectations. Brent crude surged to $3,390 per ounce, as investors shifted focus to safe-haven assets like gold.
2. U.S. Federal Reserve Policy Decision: The Federal Reserve is set to announce its policy decision on Wednesday, with markets expecting no change in interest rates. However, concerns over future rate hikes have kept investors on edge.
3. Weak Global Cues:
- U.S. stock futures dipped, reflecting concerns over Middle East tensions.
- European markets traded lower, weighed down by geopolitical uncertainty.
- Asian markets showed mixed performance, with Japan’s Nikkei gaining 0.35% while South Korea’s Kospi surged 1.40%.
Volatility Ahead for Indian Markets
The Sensex and Nifty 50’s decline highlights the fragile investor sentiment amid global uncertainties.
With geopolitical tensions rising and key economic events lined up, markets are expected to remain volatile in the coming days.
Investors are advised to adopt a cautious approach, focusing on sector-specific opportunities while keeping an eye on global developments.
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