Markets end lower as Mideast tensions, rising oil prices weigh on sentiment

IANS June 17, 2025 421 views

Indian markets closed lower as geopolitical tensions and rising oil prices dampened investor sentiment. The Sensex fell 213 points while the Nifty dropped 93 points, with pharma and metal stocks leading the decline. Analysts cited escalating Middle East conflicts and inflation concerns due to higher crude prices as key factors. Investors are now focused on the upcoming US Fed rate decision for further market cues.

"The benchmark equity index experienced moderate losses amid rising risk of an escalation of conflicts in the Middle East ahead of the FOMC meeting." – Vinod Nair, Geojit Investments
Markets end lower as Mideast tensions, rising oil prices weigh on sentiment
Mumbai, June 17: The Indian stock markets closed lower on Tuesday after a weak trading session, as escalating geopolitical tensions and concerns over inflation due to high crude oil prices kept investors on edge.

Key Points

1

Sensex drops 213 points as Middle East tensions escalate

2

Brent crude surge raises inflation fears for oil-dependent India

3

Pharma and metal sectors lead market declines

4

Investors await Fed rate decision for market direction

The cautious mood came after US President Donald Trump issued a strong warning to Iran, saying Tehran should have opted for a nuclear deal with the United States amid the ongoing conflict in the Middle East.

Both the benchmarks opened flat and briefly moved higher, but quickly lost momentum as selling pressure intensified through the session.

The Sensex fell by 212.85 points to settle at 81,583.30, after touching an intra-day low of 81,427. The Nifty also ended lower by 93.10 points, closing at 24,853.40.

"The benchmark equity index experienced moderate losses amid rising risk of an escalation of conflicts in the Middle East ahead of the FOMC meeting,” said Vinod Nair of Geojit Investments Limited.

“This uncertainty pushed Brent crude prices higher -- an unfavourable development for India, given its heavy reliance on oil imports, thereby dampening earnings growth,” Nair added.

Broader markets followed suit, with the Nifty Midcap100 and Nifty Smallcap100 indices falling 0.79 per cent and 0.82 per cent, respectively.

Sector-wise, only the IT sector managed to stay in positive territory. The rest saw selling across the board.

Pharma and metal stocks were the biggest losers, with the Nifty Pharma index falling by 1.89 per cent and the metal index down 1.43 per cent.

Other sectors like consumer durables, oil and gas, realty, auto, energy, FMCG, and media also ended with losses of up to 1 per cent.

Out of the 30 Sensex stocks, the biggest drags were Tata Motors, Sun Pharma, Bajaj Finance, IndusInd Bank, Bajaj Finserv, Eternal and Nestle India.

On the positive side, Tech Mahindra, Infosys, Asian Paints, Maruti Suzuki, NTPC, TCS, and HCL Tech provided some support to the market with modest gains.

Sundar Kewat of Ashika Institutional Equity said that rising crude oil prices are fueling inflation worries in India, the world’s second-largest oil importer, which also contributed to the negative mood.

“Investors are now looking ahead to the US Federal Reserve’s interest rate decision on Wednesday, which could have a major impact on global markets and influence investor sentiment going forward,” Kewat added.

Meanwhile, rupee traded weak by 0.18 rupees at 86.22 as rising risk sentiment from escalating Israel-Iran tensions weighed on the currency.

Reader Comments

R
Rahul K.
Not surprised by today's market fall. Every time there's tension in Middle East, our markets react badly. India imports 85% of its oil needs - we're too dependent on global crude prices. Government should fast-track renewable energy projects to reduce this vulnerability. 🇮🇳
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Priya M.
Why is our market so sensitive to US-Iran tensions? We should develop stronger economic ties with Russia and other oil producers to insulate ourselves. The IT sector holding up shows our tech resilience though! 💻
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Amit S.
Small investors like me suffer the most in these situations. Just when markets were looking stable, Middle East tensions spoil the party. Maybe time to increase gold investments as hedge against such volatility.
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Neha T.
Pharma stocks down 1.89% is worrying. Our pharmaceutical industry is world-class - this seems like overreaction. Good buying opportunity for long-term investors perhaps? 💊
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Sanjay P.
RBI should intervene to stabilize rupee if this continues. 86+ against dollar will make imports costlier and fuel inflation. Common man is already struggling with high prices of essentials. Government needs to act fast.
K
Kavita R.
While markets react to global events, we must remember India's fundamentals remain strong. This is temporary turbulence - our economy has weathered worse storms. Stay invested but cautious. 👍

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Tags:
Indian stock market Sensex Nifty Middle East tensions crude oil prices Fed rate decision inflation