The Indian equity market witnessed a volatile trading session on Friday, June 13, as geopolitical tensions rattled investor sentiment. The benchmark indices—NIFTY50 and SENSEX—recovered partially from steep intraday losses but still ended the day in the red, dragged down by weak global cues and persistent selling pressure from foreign investors.
Market Close SnapshotS&P BSE SENSEX ended at 81,118.60, falling 573.38 points or 0.70%
NSE NIFTY50 closed at 24,718.60, slipping 169.60 points or 0.68%
India VIX, the volatility index, spiked nearly 8%, signaling rising investor anxiety
Both indices hit session lows during the day with NIFTY50 plunging to 24,473 and SENSEX touching 80,354.59, before staging a partial recovery in the afternoon trade.
What Triggered the Market Downturn?
The broader sell-off was primarily influenced by escalating geopolitical concerns. Reports of an Israeli strike on Iranian military installations sent shockwaves across global equity markets. In response, crude oil prices surged sharply, stoking fears of inflationary pressures and a negative impact on India’s import bill and fiscal balance.
In addition to global headwinds, foreign institutional investors (FIIs) continued to exit Indian equities, adding further pressure to domestic sentiment. Persistent outflows raise questions about short-term market stability, especially in the wake of growing global uncertainties.
Sectoral & Stock Highlights
Despite the overall market weakness, select sectors like FMCG and Pharma showed relative resilience, while Banking, IT, and Auto stocks led the decline. Heavyweights such as Reliance Industries, Infosys, and HDFC Bank were among the top drags on both indices.
What’s Next for the Market?
While the intraday recovery suggests that domestic investors are willing to buy the dip, the road ahead remains cautious. Market watchers are closely eyeing:
Developments in the Middle East
Crude oil price trends
FII activity in the coming sessions
Upcoming U.S. Fed commentary and domestic macro data.
Final Word
The closing below the crucial 24,800 mark on the NIFTY50 signals a cautious stance among market participants. While long-term fundamentals remain intact, short-term jitters could persist as global uncertainty weighs on investor confidence.
Investors are advised to stay diversified, stick to quality stocks, and avoid impulsive decisions in the face of heightened volatility. Consulting a financial advisor before making fresh investments could help navigate the current market landscape more effectively.
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