Sensex and Nifty News: Markets Slide as Geopolitical Tensions Rattle Investors

Market Performance

Indian stock markets experienced a sharp downturn on Friday, June 13, as the Sensex and Nifty 50 suffered significant losses, in line with their global peers.

• Sensex closed at 81,118.60, down 573 points or 0.70%
• Nifty 50 settled at 24,718.60, down 170 points or 0.68%

The broader market followed suit:

• BSE Midcap index fell 0.32%
• BSE Smallcap index declined 0.30%
• India's VIX surged 7.56% to 15.08, indicating higher volatility

Main News: What Drove the Market Down?

1. Israel-Iran Conflict Escalates

• Israel launched strikes on Iran, targeting nuclear and military facilities.
• Key sites, such as the Natanz atomic facility, were reportedly targeted.
• This escalation raised fears of a prolonged conflict in the Middle East.

2. Crude Oil Prices Surge Over 10%

• Brent and WTI Crude jumped over 10%.
• Brent crude touched $78 a barrel, sparking concerns about inflation in India, a major oil importer.
• Rising oil costs pose risks to India's fiscal balance and consumer inflation.

3. Flight to Safe-Haven Assets

• Investors shifted from equities to safer assets, such as gold, US bonds, and the dollar.
• Gold prices rose 2% in domestic markets.
• The US dollar index climbed 0.30%, while bond yields declined amid higher demand.

4. Rupee Breaches 86 vs Dollar

• The rupee fell 73 paise, opening at ₹86.25/USD, compared to the previous ₹85.52/USD
• Closed the day at ₹86.08/USD, marking the most significant single-day fall since May 8
• The depreciation raised concerns over foreign outflows and import costs

5. Persistent Trade Policy Uncertainty

• Ongoing global trade uncertainties, especially around US-China tariff developments, continued to weigh on market sentiment.
• Despite partial trade agreements, markets remained cautious over the outcome.

Company & Sectoral Highlights

• All major NSE sectoral indices ended in the red.
• Nifty PSU Bank index declined the most, down 1.51%
• Nifty Metal fell 1.23%; Nifty Bank slipped 1.17%
• Sectors such as FMCG, Infrastructure, Energy, and Private Bank recorded over 1% declines

Shipping & Defence Stocks Buck the Trend

• Shipping Corporation of India and GE Shipping gained up to 10% amid fears of global trade disruptions.
• Investors expected a rerouting of ships away from the Strait of Hormuz, which would boost freight rates.
• Defense stocks rallied, pushing the Nifty India Defence index up 2.5%, as the market anticipated increased defense spending due to the geopolitical climate.

Summary of the Article

The Indian stock market ended on a weak note on June 13, with the Sensex and Nifty News highlighting a broader decline triggered by global geopolitical tensions.

Key reasons behind the drop included the Israel-Iran conflict, surging crude prices, rupee depreciation, and persistent global uncertainties.

While the overall sentiment remained risk-averse, select sectors, such as shipping and defense, showed resilience, driven by their strategic relevance in the current climate.

The day's correction wiped off nearly ₹2.4 lakh Crore from the overall market capitalization, which fell from ₹447.2 lakh Crore to around ₹449.6  lakh Crore.