Why Is Stock Market Falling Today? Sensex Crashes 1,100 Points, Nifty Below 24,650
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Indian benchmark indices slumped sharply in early trade on Friday, tracking a global sell-off after Israel launched military strikes on Iran
Why Is Share Market Falling Today? Indian benchmark indices slumped sharply in early trade on Friday, tracking a global sell-off after Israel launched military strikes on Iran, sparking renewed geopolitical tensions in the oil-rich Middle East.
As of 9:19 AM, the BSE Sensex had plunged 1,163 points, or 1.42%, to 80,528, while the Nifty50 declined 284 points, or 1.13%, to 24,608.
Sectorally, the Nifty Oil & Gas index was the worst hit, falling 1.6% amid steep losses in Mahanagar Gas, IGL, BPCL, and IOC. Other key indices — Nifty Bank, IT, Auto, Metal, and PSU Bank — also declined between 1% and 1.5%.
Broader markets mirrored the weakness. The Nifty Midcap index dropped 1.1%, while the Nifty Smallcap100 slipped 1.5%.
The intense sell-off wiped out nearly Rs 5.52 lakh crore in investor wealth, pulling the total market capitalisation of all BSE-listed firms down to Rs 444.06 lakh crore.
1. Israel's Military Strike on Iran
The sharp downturn was primarily triggered by Israel's confirmed military action against Iran early Friday. According to reports, Israel launched targeted airstrikes on Iranian nuclear facilities, missile factories, and key military personnel in what it termed a 'preemptive strike" to curb Tehran's nuclear ambitions.
A state of emergency was declared in Israel, anticipating retaliatory drone and missile attacks from Iran. Iranian media confirmed the death of Hossein Salami, the commander of the Revolutionary Guards, while Israeli sources suggested several top Iranian military and nuclear officials may have also been killed.
US Secretary of State Marco Rubio clarified that the United States had no involvement in the operation, calling it a 'unilateral action" by Israel.
The timing is especially significant, with nuclear negotiations between the U.S. and Iran stalled and a fresh round of talks scheduled in Oman this Sunday.
'The economic fallout from this escalation could be severe if the conflict drags on," said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
2. Oil Prices Soar Amid Supply Concerns
Brent crude futures spiked $6.29, or 9.07%, to $75.65 per barrel in early trade, hitting a session high of $78.50 — the highest since late January. U.S. WTI crude followed suit, rising $6.43, or 9.45%, to $74.47 after touching $77.62.
These are the steepest single-day gains for both benchmarks since Russia's invasion of Ukraine in 2022, which had previously disrupted global energy supplies. 'With Israel stating that the operation could last several days, and if Iran responds by closing the Strait of Hormuz, we could see Brent crude surging beyond $78. A prolonged disruption may significantly tighten global oil supply," added Vijayakumar.
3) Global markets tumble amid Middle East escalation
The intensifying conflict in the Middle East—a key oil-producing region—triggered a widespread selloff across global markets, compounding concerns already fuelled by U.S. President Donald Trump's unpredictable trade policies.
The MSCI Asia ex-Japan index dropped 1.1%, reflecting growing investor anxiety. U.S. S&P E-mini futures fell 1.7%, Nasdaq futures lost 1.8%, and Europe's STOXX 50 futures slipped 1.6%, signaling a weak start across major economies.
Among Asian markets, Japan's Nikkei declined 1.3%, South Korea's KOSPI shed 1.1%, and Hong Kong's Hang Seng slipped 0.8%.
Amid the geopolitical uncertainty, investors shifted capital to traditional safe-haven assets. Yields on U.S. 10-year Treasuries dropped to a one-month low of 4.31%, reflecting a move out of riskier equities.
Currency markets also saw notable movement: the Swiss franc rose 0.4% to 0.8072 per dollar, while the Japanese yen gained 0.3% to 143.12. Meanwhile, the U.S. dollar index rose 0.5% to 98.131, underlining the broader risk-off sentiment prevailing in the market.
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New Delhi, India, India
First Published:
June 13, 2025, 10:10 IST
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