Markets End Lower Amid Rising Geopolitical Risks & Crude Price Surge

Indian equity markets closed lower on Tuesday, 17 June, as investors remained wary of rising global tensions and climbing crude oil prices.

The BSE Sensex declined by 212.85 points to settle at 81,583.30, while the NSE Nifty dropped 93.10 points to end at 24,853.40.

Both indices traded flat at the open but failed to sustain gains, sliding into negative territory as selling pressure mounted through the day.

Investor sentiment was rattled following a stern warning issued by US President Donald Trump to Iran amid renewed hostilities in the Middle East.

With the region on edge and Brent crude futures spiking, market participants feared the inflationary impact on India’s oil-dependent economy.

Broader indices mirrored the weak sentiment, with the Nifty Midcap100 and Smallcap100 falling by 0.79 per cent and 0.82 per cent, respectively.

Sectorally, IT was the only gainer, offering some support to the markets.

In contrast, pharma and metal stocks bore the brunt of the sell-off.

The Nifty Pharma index declined by 1.89 per cent, while the metal index shed 1.43 per cent.

Other key sectors such as oil and gas, auto, consumer durables, FMCG, media, and realty also closed lower, recording losses of up to 1 per cent.

Analysts cited concerns over input cost pressures and cautious institutional flows ahead of the US Federal Reserve’s policy announcement.

Top movers & laggards

Among Sensex constituents, Tata Motors, Sun Pharma, Bajaj Finance, IndusInd Bank, Bajaj Finserv, and Nestle India led the losses.

On the flip side, select IT counters such as Tech Mahindra, Infosys, and TCS, along with Maruti Suzuki, NTPC, and Asian Paints, helped limit the downside with marginal gains.

Vinod Nair of Geojit Financial Services remarked, “Markets witnessed moderate losses due to rising fears of an escalation in the Middle East just ahead of the FOMC decision. Higher crude prices are particularly negative for India, given our high dependency on imports.”

Sundar Kewat from Ashika Institutional Equity echoed the sentiment, noting, “Investors remain cautious as oil-induced inflation risks weigh heavily, and all eyes are now on the Fed’s rate stance.”

Meanwhile, the Indian rupee weakened by 0.18 to 86.22 against the US dollar, as global risk-off sentiment amid escalating Israel-Iran tensions kept the currency under pressure.

With heightened geopolitical risks and an imminent US Fed decision, market participants are expected to remain on edge.

Analysts suggest a cautious approach until greater clarity emerges on global monetary policy and energy market stability.

Also Read: Sensex, Nifty Start Flat; Auto, Pharma Stocks Drag