Sensex and Nifty News: Markets Slip as Geopolitical Tensions and Fed Decision Rattle Investors

Market Performance: Sensex and Nifty End Lower Amid Geopolitical Tensions

Indian benchmark indices extended their losses for a second consecutive session, with Sensex and Nifty movements influenced by rising geopolitical tensions and subdued global cues.

• Sensex closed at 81,444.66, falling 138.64 points or 0.17%
• Nifty ended at 24,812.05, down 41.35 points or 0.17%

The indices were volatile through the session, initially gaining ground but later slipping as profit booking and external uncertainties weighed heavily on sentiment.

Main News: Middle East Conflict and Fed Decision Pressurize Markets

The ongoing conflict between Iran and Israel, now in its sixth day, has increased concerns of a larger regional war. Investors were also cautious ahead of the U.S. Federal Reserve policy announcement, expected later in the day.

In the U.S., May retail sales data showed a decline, resurfacing recession worries and adding to market nervousness. The global backdrop, combined with a lack of domestic triggers, kept Indian equities on edge.

Sectoral Snapshot: IT, Metals Decline; Auto Stocks Shine

Out of the 13 major sectoral indices, 11 ended in the red:

• Nifty IT index declined 0.83%, breaking its 3-day winning streak.
• The Nifty Metal index dropped 0.72% as concerns grew over base metal demand amid the ongoing conflict.
• The Nifty FMCG, Realty, and PSU Bank indices declined by 0.4% to 0.5%.

Only a few sectors managed to hold ground:

• Nifty Auto index gained 0.37%, backed by developments hinting at India reducing its reliance on China for rare-earth materials.
• Private Banks saw mild gains, while PSU Banks slipped 0.4%.

The India VIX, a measure of volatility, eased slightly to 14.26, indicating subdued market volatility despite global tensions.

Company Details

• Hindustan Zinc shares fell 7% after Vedanta offloaded 7.2 Crore shares via block deals worth around Rs 3,323 Crore.
  • The floor price is set at Rs 460.50 per share, approximately 5% below the previous close of Rs 485.95 per share.
  • As of December 31, 2024, Vedanta's stake stood at 63.42%.
• MobiKwik fell 8% as the six-month pre-IPO lock-in period expired.
  • Around 3.8 Crore shares became eligible for trading post expiry.

Summary of the Article

In today's Sensex and Nifty news, both indices ended lower due to external headwinds. Rising tensions in the Middle East and anticipation of the U.S. Fed decision kept investors on the sidelines. While the broader market remained weak, auto and select banking stocks provided some support. Heavyweights in the IT, metals, and FMCG sectors dragged the indices down.

With no strong domestic catalysts and global uncertainty looming, Indian markets are likely to remain range-bound in the near term.