Indian Stock Market Opens in Red Amid Escalating Israel-Iran Conflict
The Indian stock market opened sharply lower on Friday as geopolitical tensions between Israel and Iran intensified, triggering a broad-based selloff across key sectors.
Mumbai: The Indian stock market opened sharply lower on Friday as geopolitical tensions between Israel and Iran intensified, triggering a broad-based selloff across key sectors. At 9:33 AM, the BSE Sensex was down 896.5 points or 1.10% at 80,795.44, while the NSE Nifty 50 dropped 278.5 points or 1.12% to 24,609.70.
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Nifty Bank, Midcap and Smallcap Indices Also Tumble
The Nifty Bank index declined 633.80 points or 1.13%, trading at 55,448.75. Broader markets followed suit, with the Nifty Midcap 100 down 1.03% to 57,836.95, and the Nifty Smallcap 100 sliding 1.04% to 18,272.30.
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Sectoral Selloff Hits Auto, IT, PSU Banks and Financials
Heavy selling pressure was visible in sectors like:
- Auto
- IT
- Financial Services
- PSU Banks
Blue-chip companies such as Tata Motors, L&T, PowerGrid, Kotak Mahindra Bank, SBI, Titan, and Infosys were among the top laggards on the Sensex.
Geopolitical Tensions Trigger Risk-Off Sentiment
Analysts attribute the market decline to the rising hostilities between Israel and Iran, with Israel launching pre-emptive strikes. Experts warn that a prolonged conflict could have profound economic consequences, particularly in oil-sensitive sectors.
“In the near term, the market will remain in a risk-off mode. Sectors reliant on oil derivatives — like aviation, paints, adhesives, and tyres — will face pressure. However, oil producers like ONGC and Oil India may remain resilient,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Technical Indicators Pointed to Correction
From a technical perspective, analysts had already flagged bearish signals earlier in the week.
“Wednesday’s ‘buyer rejection’ candle after the bearish ‘upside gap two crows’ pattern was a caution signal,” noted Akshay Chinchalkar, Head of Research, Axis Securities.
Asian Markets Also in the Red
Major Asian indices were also trading lower in early hours:
- Hong Kong
- Bangkok
- Jakarta
- Japan
- Seoul
- China
FIIs Continue Selling, But DIIs Offer Support
Foreign Institutional Investors (FIIs) extended their sell-off, offloading ₹3,831.42 crore worth of Indian equities on June 12. On the other hand, Domestic Institutional Investors (DIIs) were net buyers, purchasing stocks worth ₹9,393.85 crore.
US Markets Ended Higher Despite Global Tensions
Despite the global uncertainty, US indices closed higher in the last session:
- Dow Jones: +101.85 pts (0.24%) at 42,967.62
- S&P 500: +23.02 pts (0.38%) at 6,045.26
- Nasdaq: +46.61 pts (0.24%) at 19,662.49
