The Indian equity market witnessed a challenging week, closing sharply in the red for consecutive sessions as global geopolitical tensions and surging oil prices cast a significant shadow over investor sentiment. Both the Sensex and Nifty 50 recorded notable dips, reflecting a broad-based cautious approach from investors.
On Friday, June 13, 2025, the Sensex closed at 81,118.60, down 573.38 points (0.70%), while the Nifty ended at 24,718.60, a dip of 169.60 points (0.68%). This downturn was primarily attributed to weak global cues, exacerbated by heightened geopolitical tensions following Israel's military strike on Iran.
The week saw crude oil prices surge dramatically, directly impacted by escalating geopolitical tensions in the Middle East following Israel's military action against Iran. Both Brent crude and U.S. West Texas Intermediate crude experienced significant increases, immediately raising concerns about inflationary pressures and the escalating cost of doing business for energy-dependent economies like India.
This sharp rise in input costs is expected to squeeze the profit margins of major oil-importing companies such as Indian Oil and Asian Paints.
Amidst the broader market's decline, defence stocks like BEL and HAL defied the trend, rallying on investor expectations of increased defence spending due to global instability. Conversely, the airline sector faced headwinds following an Air India plane crash, causing share prices for IndiGo and SpiceJet to slide, while LIC announced support for victims.
Beyond geopolitical concerns, the market saw significant corporate activity, with numerous prominent companies going ex-dividend this week. Bajaj Finance was a notable highlight, with its bonus issue and stock split reaching its record date. Additionally, several companies, including SpiceJet and Libas Consumer Prods, released their latest quarterly or annual results. On the economic front, India's May inflation rate showed a slight decrease, while other vital data such as Foreign Exchange Reserves, Passenger Vehicles Sales, and the Balance of Trade were closely watched for economic insights.
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As the week concludes, the Indian market remains susceptible to external shocks. The ongoing geopolitical tensions and the trajectory of global oil prices will likely continue to dictate investor sentiment in the coming days. While the defence sector has shown resilience, the broader market's performance will hinge on a de-escalation of global conflicts and a stabilisation of commodity prices.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 13, 2025, 4:30 PM IST
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