Equity Market Weekly Wrap: Sensex Drops 1,070 Points Amid Geopolitical Tensions; Nifty Ends Below 24,750

The benchmark Nifty 50 index slipped below the 24,750 level, while the S&P BSE Sensex lost over 1,000 points.

The Indian equity markets ended the week on a weak note as rising geopolitical tensions and global uncertainties weighed heavily on investor sentiment. The ongoing U.S.-China trade negotiations and escalating conflict between the U.S. and Iran, along with Israel's recent military strikes on Iran, triggered broad-based selling in the markets. As a result, the benchmark Nifty 50 index slipped below the 24,750 level, while the S&P BSE Sensex lost over 1,000 points. However, the broader markets, particularly the Mid-Cap and Small-Cap indices, showed relative resilience.

During the week ended Friday, 13 June 2025, the S&P BSE Sensex declined 1,070.39 points or 1.30 per cent to close at 81,118.60. The Nifty 50 fell 284.45 points or 1.14 per cent to 24,718.60. The BSE Mid-Cap index dropped 0.90 per cent to 45,681.28, and the BSE Small-Cap index slipped 0.13 per cent to 53,370.29.

The week began on a positive note, with domestic indices rising on Monday. The Sensex gained 256.22 points while the Nifty added 100.15 points. On Tuesday, markets remained flat as investors tracked developments in the U.S.-China trade discussions. Wednesday witnessed modest gains supported by positive global cues. However, sentiment turned sour on Thursday and Friday, culminating in a sharp sell-off after Israel's strikes on Iran triggered concerns about crude oil prices and regional stability.

On the macroeconomic front, India’s CPI-based inflation eased to 2.82 per cent in May 2025, a drop of 34 basis points from April's 3.16 per cent. This marked the lowest inflation level since February 2019. A key contributor to the decline was food inflation, which fell to 0.99 per cent, significantly down from 1.78 per cent in April.

Among stocks in focus, HDFC Bank fell 2.99 per cent after an FIR was filed by the Mehta Family Trust against the bank and its MD & CEO. MCX rose 2.23 per cent after receiving SEBI’s approval to launch electricity derivatives. Capri Global Capital surged 13.2 per cent on launching autopay for gold loans, simplifying repayment.

In corporate updates, JSW Steel slipped 1.69 per cent despite reporting an 8 per cent year-on-year increase in steel output. Mahindra & Mahindra dropped 3.19 per cent, even as its production rose 27.56 per cent in May. The company also participated in a rights issue of Mahindra Finance worth Rs 2,996 crore, increasing its stake. Glenmark Pharmaceuticals rallied 5.09 per cent on news of launching zanubrutinib in India after DCGI approval.

Other notable movers included Zydus Lifesciences, up 1.47 per cent, after receiving an EIR from the USFDA for its API facility. Maruti Suzuki fell 0.82 per cent despite expanding its solar capacity. L&T dropped 0.47 per cent but announced a significant infrastructure order from JSW Energy.

Globally, economic indicators remained mixed. The U.K. unemployment rate rose to 4.6 per cent, its highest since July 2021, while employment increased slightly. China's consumer inflation stayed subdued at -0.1 per cent, and producer prices fell sharply by 3.3 per cent. Japan’s GDP contracted 0.2 per cent in Q1, though the decline was less than earlier estimates. In the U.S., May CPI rose 2.4 per cent year-on-year, while the PPI grew 0.1 per cent.

Overall, the week highlighted how geopolitical risks and macroeconomic cues can heavily influence investor behaviour, especially when concerns about crude prices and inflation are at play.

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