Trump Warns Iran of 'Greater Force' as Israel Shuts Airspace; Indian Stocks Brace for Monday Slump

  The escalating Israel-Iran conflict, now intensified by U.S. strikes on Iranian nuclear sites, has sent shockwaves through global markets. U.S. President Donald Trump, speaking from the White House, warned Iran of “greater force” if it retaliates, labeling the nation a “Middle East bully” and urging peace. With Israeli airspace closed and U.S. B-2 stealth bombers deployed to Guam, the situation is precarious. This article analyzes the potential negative impact on the Indian stock market come Monday, as geopolitical tensions threaten economic stability. Escalation of the Israel-Iran Conflict The conflict entered its second week with the U.S. confirming strikes on Iran’s Fordow, Natanz, and Isfahan nuclear facilities. These targeted attacks follow heightened hostilities between Israel and Iran, with Trump’s remarks signaling a hardline U.S. stance. The closure of Israeli airspace underscores the severity of the situation, disrupting regional trade and aviation routes. Iran’s potent...
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NIFTY50 Closes Near 24,850, SENSEX Dips to 81,583 Amid Pharma Tariff Concerns

 

On June 17, 2025, the Indian stock market ended lower, driven by escalating geopolitical tensions and tariff concerns in the pharmaceutical sector. The S&P BSE SENSEX closed at 81,583.30, down 212.85 points or 0.26%, while the NIFTY50 settled at 24,853.40, declining 93.10 points or 0.37%. The broader market mirrored this trend, with most sectors closing in the red, except for IT.

Key Drivers of the Market Decline

Rising geopolitical concerns, particularly the escalating conflict between Iran and Israel, contributed to investor caution. Additionally, US President Donald Trump’s announcement regarding impending tariffs on the pharmaceutical sector rattled the markets, leading to sharp declines in pharma stocks. Companies like Granules, Lupin, and Laurus Labs saw declines of up to 4%.

Sector Performance

  • Pharma Sector: Significant losses due to tariff concerns.

  • IT Sector: The only sector to close in the green.

  • Other Sectors: Real estate, banking, and auto sectors also ended lower, contributing to a bearish market breadth.

Institutional Activity

According to exchange data:

  • Foreign Institutional Investors (FIIs) sold equities worth ₹2,539.42 crore on a net basis.

  • Domestic Institutional Investors (DIIs) purchased equities worth ₹5,780.96 crore, providing some counterbalance to the selling pressure.

Global Market Context

Global markets showed mixed performance:

  • Japan’s Nikkei 225: Gained 0.58%, closing at 38,536.74.

  • China’s Shanghai Composite: Marginally lower by 0.04%, ending at 3,387.40.

  • South Korea’s Kospi: Up 0.12%, settling at 2,950.30.

  • Hong Kong’s Hang Seng: Down 0.34%, closing at 23,980.30.

In the US, retreating oil prices supported a positive close for stocks on Monday, offering some contrast to the cautious sentiment in Asian markets.

Impact of Geopolitical Tensions

The escalation of the Iran-Israel conflict, highlighted by Israel’s military evacuation warning to 330,000 people in Tehran, added to global market uncertainty. This contributed to the cautious stance of investors in India and other Asian markets.

Outlook

The Indian market’s near-term trajectory may remain volatile due to:

  • Ongoing tariff-related developments in the pharma sector.

  • Geopolitical uncertainties impacting global sentiment.

  • Mixed cues from global markets and institutional flows.

Investors are advised to stay updated on international developments and monitor sector-specific news, particularly in pharmaceuticals, as tariff policies could further influence market dynamics.

Stay tuned to The ExpertSK blog for more updates on market trends and economic developments.

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