Bears Grip D-Street: Nifty Below 24,750, Sensex Sheds over 580 Points

The Indian stock market felt the heat of Israeli airstrikes on June 13, Friday, as the headline indices—Nifty 50 and BSE Sensex—plummeted up to more than 1% each to break below the 24,500 and 80,400 level to touch their respective day's low. The Indian equities markets opened in deep red with major cuts on the last trading day of the week. However, as the day's session progressed the indices trimmed some losses were trading 0.7% lower each.

Continued global uncertainties weighed on the market sentiments, leading to 169.60 and 573.38 points fall in Nifty 50 and Sensex. The benchmarks closed the week at 24,718.60 and 81,118.60 points, respectively. Israel carried out an airstrike on Iran, resulting in a major escalation in the Middle East, which thus pushed the markets into a state of chaos.  Crude oil prices rose after the news of the rising conflict in the Middle East. Earlier today, the GIFT Nifty also indicated a negative start to the day's trade.

All sectoral indices opened in red in the today’s session. Nifty PSU Bank and Nifty FMCG were the worst hit, declining 1.2% and 1.1%, respectively.  

The market faced a widespread selling pressure as all stocks, barring ONGC and Bharat Electronics, declined sharply. ONGC and BEL rose 1.7% and 1.3%, respectively, in the early trade. On the worst-hit side, Kotak Mahindra Bank was the biggest loser, plummeting 2%, followed by Trent, Adani Ports, UltraTech Cements, and Power Grid, which crashed 1.7-1.9% in the early trade.

Shares of oil marketing companies fell by as much as 6%, as Brent crude futures surged following escalating tensions between Israeli and Iran.

Brent crude prices have flared up and it can rise further if Iran in retaliation closes the straight of Hormuz severely restricting oil supply, VK Vijayakumar, Chief Investment Strategist, Geojit Investments said. The impact on market will depend on how long the conflict lingers, he said. “In the near-term the market will be in a risk-off mode”.