Indian Equities Slide: Nifty Breaks 6-Day Winning Streak; Closes Below 25,000

At the end of trading, the Nifty 50 had slipped 253.20 points, or 1.01 per cent, to settle at 24,888.20. The Sensex also dropped 823.16 points, or 1 per cent, finishing at 81,691.98.

Market Update at 4:00 PM: On June 12, Indian benchmark indices closed sharply lower, bringing an end to Nifty's six-day winning run. The index saw its steepest intraday drop in a month.

Markets opened on a positive note but gradually lost strength. By afternoon, selling pressure intensified, leading to a weak close for the session.

At the end of trading, the Nifty 50 had slipped 253.20 points, or 1.01 per cent, to settle at 24,888.20. The Sensex also dropped 823.16 points, or 1 per cent, finishing at 81,691.98. The downturn was triggered by ongoing uncertainty regarding the U.S.-China trade discussions and escalating geopolitical tensions in the Middle East, which dampened investor confidence.

The decline was further exacerbated after an Air India aircraft carrying 242 passengers crashed shortly after departing from Ahmedabad. This impacted aviation stocks heavily—IndiGo shares declined by 2.7 per cent, while SpiceJet lost 1.8 per cent.

All 11 major sectoral indices ended in negative territory. The broader markets also saw weakness, with both Nifty Mid-Cap and Small-Cap indices closing in the red.

Paytm plunged 10 per cent after the Finance Ministry clarified the rumours related to the Merchant Discount Rate (MDR).

Gensol Engineering fell 2 per cent following the NCLT’s decision to reserve its verdict on IREDA’s Rs 729 crore insolvency petition.

The Nifty Realty index dropped 2 per cent, making it the worst-performing sector. Anant Raj led the losses with a fall of over 3 per cent.

The Nifty Mid-cap 100 lost 1.60 per cent, while the Small-cap 100 slipped 1.78 per cent, marking the sharpest intraday drop in a month for the Small-cap segment.

Out of 2,979 NSE-listed stocks, 1,783 advanced, 2,112 declined, and 74 were unchanged.

There were 56 stocks that hit fresh 52-week highs and 17 that touched new 52-week lows. Additionally, 92 stocks were locked in upper circuits, while 41 hit lower circuits.

Market Update at 12:30 PM: Indian benchmark indices Nifty 50 and Sensex slipped 0.4 per cent each as investor sentiment weakened amid ongoing uncertainty around the U.S.-China trade negotiations and escalating tensions in the Middle East. Broader market indices also saw weakness, with both midcap and smallcap segments declining by 0.7 per cent.

Twelve out of thirteen key sectoral indices ended in the red, reflecting widespread caution. Asian markets mirrored this trend, pressured by geopolitical developments and the lack of clear direction in trade discussions. While U.S. President Donald Trump mentioned a tariff framework with China, the absence of specific details kept markets guessing.

This spike in crude prices benefitted upstream oil producers like ONGC and Oil India, which saw gains, whereas oil marketing firms faced selling pressure. On the downside, shares of Paytm tumbled 8 per cent after the government dismissed media reports suggesting the imposition of UPI transaction fees.

Market Update at 10:30 AM: India's benchmark indices traded slightly lower on Thursday, with declines led by the IT sector. Uncertainty surrounding the U.S.-China trade negotiations and escalating tensions in the Middle East contributed to a cautious investor mood. As of 10:13 a.m. IST, the Nifty 50 slipped 0.16 per cent to 25,101.3, while the BSE Sensex dropped 0.2 per cent to 82,355.26.

Broader indices, including mid-cap and small-cap segments, also saw a decline of around 0.3 per cent. Losses were recorded across 11 of the 13 major sectoral indices. Global sentiment remained subdued, with Asian markets showing little momentum and U.S. stocks closing lower overnight amid fresh geopolitical concerns.

U.S. President Donald Trump mentioned that a framework on tariff rates with China had been established, sparking some investor optimism. However, the absence of clear details left markets wary. VK Vijayakumar of Geojit Investments noted that uncertainty remains due to past credibility concerns.

Meanwhile, geopolitical stress intensified after Iran warned of potential strikes on U.S. military bases in the Middle East if nuclear talks failed.

In sectoral moves, the Nifty IT index declined 1 per cent, as many Indian tech firms depend heavily on U.S. revenues. On the stock-specific front, Paytm shares fell 8.4 per cent after the finance ministry denied reports suggesting the introduction of a merchant discount rate (MDR) on UPI payments. UBS flagged the non-implementation of MDR as a risk to Paytm's profitability outlook for FY26 and FY27.

Pre-Market Update at 8:00 AM: Indian equity indices are expected to open on a cautious note today, Thursday, June 12, with early indicators pointing to a soft start. As of 7:18 AM, the GIFT Nifty was trading around 25,167, showing a decline of 34 points from its previous close.

Asian markets showed mixed trends as investors evaluated the progress of U.S.-China trade developments. Meanwhile, Wall Street closed lower overnight following the latest U.S. inflation data and ongoing geopolitical tensions.

In the institutional segment, Foreign Institutional Investors (FIIs) were net sellers on June 11, offloading equities worth Rs 446.31 crore. Domestic Institutional Investors (DIIs), however, remained strong buyers for the 17th consecutive session, purchasing stocks worth Rs 1,584.87 crore.

On June 11, Indian markets ended slightly positive. The Nifty 50 managed to stay above the 25,100 mark, closing at 25,141.40 with a gain of 37.15 points or 0.15 per cent. The Sensex also edged up by 123.42 points, ending the session at 82,515.14. Market volatility eased further, with the India VIX falling to 13.66.

Asian equities traded in a mixed range as investors weighed the U.S.-China trade outlook. In the U.S., major indices ended lower due to rising tensions in the Middle East and uncertainty over trade negotiations. The Dow Jones remained nearly flat at 42,865.77. The S&P 500 dipped 0.27 per cent to close at 6,022.24, and the Nasdaq dropped 0.50 per cent to end at 19,615.88.

U.S. inflation data showed a minor uptick, with the Consumer Price Index (CPI) rising 0.1 per cent in May, following a 0.2 per cent increase in April. On a yearly basis, CPI grew 2.4 per cent, slightly up from 2.3 per cent.

In a significant global development, U.S. President Donald Trump confirmed a finalised trade agreement with China. The deal includes revised tariff rates: 55 per cent on U.S. imports and 10 per cent on Chinese exports.

Investors turned to gold amid geopolitical risks and lower inflation data. Spot gold increased 0.3 per cent to USD 3,364.10 per ounce, while U.S. gold futures rose 1.2 per cent to USD 3,384.40.

Oil prices surged, reaching a two-month high on Middle East conflict concerns. Brent crude edged up 0.1 per cent to USD 69.84, and WTI climbed 0.16 per cent to USD 68.26. Both benchmarks gained over 4 per cent in the previous session.

The dollar weakened on growing expectations of a rate cut by the Federal Reserve. The index slipped to 98.327, its lowest level since April 22.

For today, Manappuram, ABFRL, CDSL, IEX, Chambal Fertilisers, IREDA, RBL Bank and Titagarh continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.