Shares tumble as Middle East tensions spark global sell-off
Domestic equity benchmarks ended sharply lower today as rising geopolitical tensions rattled investor sentiment. The sell-off followed reports of Israeli military strikes on Iran, stoking fears of broader conflict in the oil-rich Middle East and pushing crude oil prices higher. The nervousness spilled across global markets, triggering widespread risk-off mood. Back home, the Nifty slipped below the 24,750 mark, weighed down by losses in banking and FMCG stocks.
The S&P BSE Sensex slumped 573.38 points or 0.70% to 81,118.60. The Nifty 50 index fell 169.60 points or 0.68% to 24,718.60. The 50-unit index has fallen 1.68% in two consecutive sessions.
Adani Ports & Special Economic Zone (down 2.71%), HDFC Bank (down 1.15%) and Reliance Industries (down 0.83%) were major drags.
The broader market outperformed the frontline indices, the S&P BSE Mid-Cap index slipped 0.32% and the S&P BSE Small-Cap index dropped 0.30%.
The market breadth was weak. On the BSE, 1,516 shares rose and 2,469 shares fell. A total of 138 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, soared 7.59% to 15.08
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 0.45% to 6.305 from the previous close of 6.277.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.0700 compared with its close of 85.5200 during the previous trading session.
MCX Gold futures for 5 August 2025 settlement advanced 1.55% to Rs 99,925.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.51% to 97.970.
The United States 10-year bond yield gained 0.39% to 4.373.
In the commodities market, Brent crude for August 2025 settlement jumped $6.14 or 8.85% to $75.50 a barrel.
Global Markets:
US stock futures nosedived on Friday, with Dow Jones futures plunging 492 points, after media outlets reported that Israel had launched military strikes on Iran, specifically targeting its nuclear facilities. The reports emphasized that the US was not involved in the operation.
Israels Defense Minister declared a nationwide state of emergency, saying, "Following the State of Israels preemptive strike against Iran, a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future."
European and Asian markets tumbled on Friday as tensions escalated following Israels military strike on Irans nuclear program, prompting Iran to vow retaliation and weighing heavily on global sentiment.
Despite the looming volatility, US indices closed higher on Thursday. The S&P 500 rose 0.38%, while the Nasdaq Composite gained 0.24% and the Dow Jones Industrial Average added 0.24%.
In economic data, the Producer Price Index (PPI) for final demand rose 0.1% in May, recovering from a revised 0.2% drop in April, according to the Bureau of Labor Statistics.
Oracle soared to record highs after the company raised its full-year revenue growth outlook, citing strong AI-related demand.
Boeing tumbled after a tragic Air India 787-8 Dreamliner crash during takeoff in Ahmedabad. The aircraft was carrying 242 passengers. GE Aerospace, which supplies the jet's GEnx-1B engines, also saw its shares slide sharply.
Stocks in Spotlight:
Shares of three state-run oil marketing companies slumped after Brent crude prices flared up. BPCL (down 1.90%), Indian Oil Corporation (down 1.78%) and HPCL (down 1.41%) edged lower. Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has freed pricing of petrol and diesel.
RPP Infra Projects hit an upper limit of 2% after the company announced that it has received letter of acceptance worth Rs 282.88 crore from the principal general manager UPSIDA Complex Kanpur.
Kernex Microsystems (India) hit an upper limit of 5% after the company said it secured two contracts from Southern Railways in a joint venture with VRRC, under the KERNEX-VRRC consortium.
Sigachi Industries added 1.58% after the firm informed that it has secured the Terms of Reference (ToR) approval from the State Environment Impact Assessment Authority (SEIAA), Andhra Pradesh.
TANFAC Industries rallied 9.01% after the company announced that it has has successfully commissioned its 5,000 tonnes per annum (TPA) Solar Grade Dilute Hydrofluoric Acid (DHF) plant.
CSB Bank fell 1.11%. The bank announced that Reserve Bank of India (RBI) has approved the reappointment of Pralay Mondal as managing director (MD) & CEO of the bank for a period of three years with effect from 15 September 2025.
Yes Bank shed 1.27%. The bank said that the Reserve Bank of India (RBI) has granted its approval for the extension of the tenure of appointment of Prashant Kumar as managing director & CEO of the bank.
Crompton Greaves Consumer Electricals rose 0.17%. The company has secured a letter of award (LoA) worth Rs 100.68 crore from the Maharashtra Energy Development Agency (MEDA) for supplying and installing 4,500 Off-grid Solar Photovoltaic Water Pumping Systems (SPWPS).
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Time of India
38 minutes ago
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Wall Street's momentum machine faces a Middle East stress test
Geopolitical tensions are rising. Israeli airstrikes on Iranian nuclear sites sparked market reactions. Oil prices initially surged, but later stabilized. Investors are closely monitoring the Middle East and Washington. They await signals that could influence market sentiment next week. The focus is on the durability of the market rally. Traders are balancing risk and potential gains. The situation remains fluid. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads It's the kind of geopolitical flashpoint that might once have triggered a full-blown market meltdown: Israeli warplanes struck Iranian nuclear sites, Tehran vowed revenge — then followed through. Oil in a year where crises have come in waves, traders from London to New York opted to hold their breath rather than flee en — gold climbed, stocks slid and bonds seesawed, but there was no big stampede. The S&P 500 finished the week down modestly and remains less than 3% below its record high. Crude gave back some of its early relative calm — for now — followed a familiar playbook: Markets are shocked, prices stumble, then the habitual dip-buyers swoop in. It's a routine that has been all but cemented after months of crises that never quite landed. That got fresh impetus this week when readings on inflation and consumer sentiment came in better than airstrikes disrupted this trading pattern Friday, without shattering it. And in the end, another Wall Street phenomenon proved equally important in salvaging the week: momentum. From risk premiums in corporate bonds to crypto and stock-market breadth, trends have stayed largely positive — evidence that money managers remain concerned that missing market rebounds this year is a bigger risk than succumbing to the attention turns to the weekend. With fresh escalation underway, markets are bracing for signals from the Middle East and Washington that could shape next week's mood — and test how durable the rally reflex really is.'This has been a year where fading bad news paid off, and the FOMO theme has been growing louder,' said Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions. 'When that momentum becomes blind euphoria it can cause bulls to hit a brick wall at full speed, but we aren't there yet.'Of course, anxiety abounds, as it has throughout a turbulent year. Israel warned its attacks may go on for weeks, while Iran has vowed to respond buying is also slowing, money is edging into cash and gold, and bonds offered little comfort: the 10-year yield ended higher on Friday, a reminder that traditional havens are no sure thing as fiscal clouds the kicker: President Donald Trump has promised sweeping tariffs within two weeks, a potential supply-side disruption that could collide with an oil market already on edge.'If the stock market can muscle through this, that will only increase the FOMO. It may well engender the perception that the rally is 'bullet proof,'' said Michael Purves, founder and CEO of Tallbacken Capital Advisors. 'This increases the ultimate downside risk.'By the Friday close, commodities ended up bearing the brunt of the pressure from the ongoing conflict, with oil climbing about 8% and gold testing a record high. The S&P 500 ended the week just 0.4% lower and 10-year Treasuries traded down about 10 basis points. The Cboe Volatility Index, or VIX, ended the week just above 20 as measures for bonds and currencies closed factor in the relative resilience may come from the sheer volume of shocks investors have already absorbed in 2025 — from inflation and bond convulsions to tariffs and geopolitics. While each has caused brief selloffs, the snapbacks have been fast enough to sharpen, not dull, the momentum impulse among investors.A Societe Generale SA index tracking cross-asset momentum has this month staged one of its sharpest reversals on record, with nine of 11 components emitting bullish signals. Trends derived across fixed income, equities and currencies were all flashing green when the conflict broke out. 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Economic Times
41 minutes ago
- Economic Times
Wall Street's momentum machine faces a Middle East stress test
It's the kind of geopolitical flashpoint that might once have triggered a full-blown market meltdown: Israeli warplanes struck Iranian nuclear sites, Tehran vowed revenge — then followed through. Oil spiked. ADVERTISEMENT Yet in a year where crises have come in waves, traders from London to New York opted to hold their breath rather than flee en masse. Yes — gold climbed, stocks slid and bonds seesawed, but there was no big stampede. The S&P 500 finished the week down modestly and remains less than 3% below its record high. Crude gave back some of its early gains. That relative calm — for now — followed a familiar playbook: Markets are shocked, prices stumble, then the habitual dip-buyers swoop in. It's a routine that has been all but cemented after months of crises that never quite landed. That got fresh impetus this week when readings on inflation and consumer sentiment came in better than estimated. The airstrikes disrupted this trading pattern Friday, without shattering it. And in the end, another Wall Street phenomenon proved equally important in salvaging the week: momentum. From risk premiums in corporate bonds to crypto and stock-market breadth, trends have stayed largely positive — evidence that money managers remain concerned that missing market rebounds this year is a bigger risk than succumbing to the dip. Now, attention turns to the weekend. With fresh escalation underway, markets are bracing for signals from the Middle East and Washington that could shape next week's mood — and test how durable the rally reflex really is. ADVERTISEMENT 'This has been a year where fading bad news paid off, and the FOMO theme has been growing louder,' said Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions. 'When that momentum becomes blind euphoria it can cause bulls to hit a brick wall at full speed, but we aren't there yet.' ADVERTISEMENT Of course, anxiety abounds, as it has throughout a turbulent year. Israel warned its attacks may go on for weeks, while Iran has vowed to respond buying is also slowing, money is edging into cash and gold, and bonds offered little comfort: the 10-year yield ended higher on Friday, a reminder that traditional havens are no sure thing as fiscal clouds gather. ADVERTISEMENT And the kicker: President Donald Trump has promised sweeping tariffs within two weeks, a potential supply-side disruption that could collide with an oil market already on edge.'If the stock market can muscle through this, that will only increase the FOMO. It may well engender the perception that the rally is 'bullet proof,'' said Michael Purves, founder and CEO of Tallbacken Capital Advisors. 'This increases the ultimate downside risk.'By the Friday close, commodities ended up bearing the brunt of the pressure from the ongoing conflict, with oil climbing about 8% and gold testing a record high. The S&P 500 ended the week just 0.4% lower and 10-year Treasuries traded down about 10 basis points. The Cboe Volatility Index, or VIX, ended the week just above 20 as measures for bonds and currencies closed lower. ADVERTISEMENT One factor in the relative resilience may come from the sheer volume of shocks investors have already absorbed in 2025 — from inflation and bond convulsions to tariffs and geopolitics. While each has caused brief selloffs, the snapbacks have been fast enough to sharpen, not dull, the momentum impulse among investors.A Societe Generale SA index tracking cross-asset momentum has this month staged one of its sharpest reversals on record, with nine of 11 components emitting bullish signals. Trends derived across fixed income, equities and currencies were all flashing green when the conflict broke out. Price action like that is hard for Wall Street's risk traders to ignore, according to SocGen's Manish Kabra.'We look at the VIX and MOVE indexes, they're showing an element of complacency in there that's a bit surprising because of all these events that occurred,' said Phillip Colmar, global strategist at MRB Partners. 'If we hadn't gone through the April fiasco, I think that the markets would be nervous right now and more negative.'Indeed, buoyant positioning is extreme enough to give some Wall Street naysayers pause. Fear of missing out has driven extreme readings in the exchange-trade funds universe, among other places, with high-beta ETFs drawing significantly more inflows than low-beta counterparts, according to Bloomberg Intelligence's Athanasios Psarofagis. 'Just as there was overreaction to the downside from the initial tariff news, the rebound appears a bit too hopeful in our view,' said Nathan Thooft at Manulife Investment Management in Boston, which oversees $160 billion. 'There are still a number of uncertainties that could lead to higher market volatility in the coming months. With that sa
