Geopolitical Tensions Drag Indian Markets Lower as Israel Strikes Iran
As of 9:15 a.m. IST, the Nifty 50 index dropped 1.67 per cent to 24,473, while the BSE Sensex slipped 1.55 per cent to 80,427.81.
Market Update at 10:00 AM: Indian stock markets opened lower on Friday, mirroring a broader decline across Asian equities, after reports emerged that Israel had launched military strikes on Iran. The development heightened geopolitical tensions in the oil-rich Middle East.
As of 9:15 a.m. IST, the Nifty 50 index dropped 1.67 per cent to 24,473, while the BSE Sensex slipped 1.55 per cent to 80,427.81.
Losses were seen across all 13 sectoral indices. The Small-Cap and Mid-Cap segments, which are more aligned with domestic economic trends, each declined by around 2 per cent.
Globally, the MSCI Asia ex-Japan index fell by 1.1 per cent. Meanwhile, investors moved towards safe-haven assets such as gold and the Swiss franc, while crude oil prices surged by 9 per cent on concerns over supply disruptions.
According to Israeli authorities, the strikes targeted Iran’s nuclear infrastructure in an effort to prevent the development of atomic weapons. The United States has denied any role in the military action.
Market Update at 8:00 AM: Often viewed as an unlucky day in Western folklore, Friday the 13th seems to be living up to its reputation—at least for Indian equity markets. As of 7:57 AM, GIFT Nifty is signaling a weak start, down 220 points or 0.88 per cent, at 24,705.
Indian markets are likely to open sharply lower, mirroring the global risk-off sentiment. Dow Futures have dropped nearly 600 points, while Asian markets are firmly in the red following reports of an Israeli military strike on Iran. The escalation in geopolitical tensions has unnerved investors worldwide.
On the brighter side, India’s consumer inflation data provided some relief. CPI inflation for May 2025 eased to 2.82 per cent, continuing its downward trajectory and hitting a multi-year low. However, this positive development is being overshadowed by the sharp spike in crude oil prices, which surged over 5 per cent in response to the Middle East tensions—posing a fresh concern for India’s import-heavy economy.
On Wednesday, June 12, 2025, Domestic Institutional Investors (DIIs) remained active buyers, recording net purchases of Rs 9,393.85 crore.
Foreign Institutional Investors (FIIs), however, turned net sellers on the same day, pulling out Rs 3,831.42 crore from Indian equities. On the other hand, DIIs not only absorbed the selling pressure but also recorded their highest single-day buying figure for the month of June so far.
Thursday was a rough session for Indian markets. Both the Nifty and Sensex ended with losses of around 1 per cent. The broader markets were hit harder—Nifty Midcap 100 and Smallcap 100 indices declined by 1.60 per cent and 1.78 per cent, respectively. Every sectoral index closed in the red, reflecting a broad-based sell-off.
Meanwhile, U.S. markets managed to end higher on Thursday, supported by cooling inflation and optimism surrounding U.S.-China trade relations. The S&P 500 added 23.02 points to close at 6,045.26, the Dow Jones rose by 101.85 points to 42,967.62, and the Nasdaq gained 46.61 points to end at 19,662.48.
With the Israel-Iran conflict rattling global sentiment and crude oil surging, Indian equities are bracing for a rough start. While easing inflation is a positive takeaway, it may not be enough to counter the pressure from global headwinds. Expect heightened volatility as the session unfolds.
Disclaimer: The article is for informational purposes only and not investment advice.