Sensex & Nifty dip as Iran-Israel tensions rise and oil prices surge 4%
On Wednesday, June 18, 2025, the Indian stock market shows a cautious trend. Benchmark indices Sensex and Nifty are trading lower as rising geopolitical tensions weigh on investor sentiment. Tensions between Iran and Israel have intensified, with fresh missile attacks reported for the fifth consecutive day. Reports suggest that Israeli airstrikes have damaged Iran's underground uranium enrichment facility at Natanz, raising concerns globally.
As a result of the conflict, global crude oil prices surged by 4 per cent overnight, further contributing to the nervousness in equities.
Current Market Overview
By 11:40 AM, the BSE Sensex trades at 81,272.93, down 310 points or 0.38%, while the NSE Nifty50 hovers at 24,774.3, down 80 points or 0.32%. The broader sentiment across the Indian equity market remains cautious.
Most sectors are in the red, except auto stocks, which are seeing some buying support. Large-cap and mid-cap segments also witness profit booking.
Top Gainers on the Sensex
Despite the overall weak mood, a few stocks are moving higher. The top performers on the Sensex include:
IndusInd Bank
Maruti Suzuki
Mahindra & Mahindra (M&M)
HCL Technologies
Titan Company
Tech Mahindra
Tata Consultancy Services (TCS)
Asian Paints
These stocks are showing gains of up to 5 per cent, driven by sector-specific strength, bargain buying, or strong fundamentals.
Top Losers on the Sensex
On the losing side, the market sees weakness in several key stocks:
Kotak Mahindra Bank
Power Grid Corporation
NTPC Ltd.
Adani Ports and SEZ
HDFC Bank
These stocks are down marginally, with losses up to 0.1 per cent. Profit-taking and cautious positioning ahead of more global cues are likely causes of the decline.
Sectoral Performance
Most sectoral indices trade in the negative zone.
The Nifty Auto Index stands out with a 0.48 per cent gain, supported by strong buying in automobile majors like Maruti and M&M.
On the other hand, sectors such as banking, power, IT, FMCG, metals, and real estate face selling pressure.
The cautious tone across sectors suggests that investors prefer safe bets and are avoiding risky positions until geopolitical stability returns.
Broader Markets
In the broader market, both the Nifty MidCap 100 and the Nifty SmallCap 100 are also trading in the red.
Nifty MidCap index is down by 0.64 per cent
Nifty SmallCap index is down by 0.31 per cent
Mid and small-cap segments have been witnessing volatility in recent sessions, with investors shifting to large-cap stocks due to risk aversion.
Global Factors Influencing the Market
The biggest driver today is the escalation in Middle East tensions. The missile strikes and damage to Iran’s Natanz nuclear facility have added uncertainty in global markets. These events are pushing up crude oil prices, raising concerns over inflation and fuel costs, especially for oil-importing countries like India.
A sharp rise in oil prices can increase fiscal pressure, affect the rupee, and hurt companies with high fuel dependency, such as airlines, paints, chemicals, and logistics.
Global equity markets are also reacting to the developments. Most Asian markets are trading lower today. Investors globally are waiting for further updates and possible diplomatic interventions to de-escalate the conflict.
IPO Watch: Oswal Pumps and Arisinfra Solutions
Oswal Pumps IPO
The basis of allotment for Oswal Pumps Limited, a solar pump manufacturer, is expected to be finalised today. The company’s SME public issue has received a strong response from investors, with subscriptions overshooting by over 34 times. This shows strong investor interest in small-cap and green energy companies, especially in the SME segment.
Arisinfra Solutions IPO
Another IPO in focus today is Arisinfra Solutions Limited, which has opened its public subscription window. The company, which operates in tech-based construction materials, aims to raise ₹499.60 crore at the upper end of the price band.
Given the ongoing market volatility, investors are closely tracking the response to this IPO. Analysts believe that infrastructure-focused companies with digital and green offerings may continue to draw strong interest despite short-term market risks.
Key Domestic Indicators
Rupee Movement
The Indian rupee is trading slightly weaker against the US dollar today, following the rise in global crude prices. A weaker rupee typically raises import costs and adds pressure to inflation, which can affect corporate earnings.
Bond Yields
Government bond yields remain stable, as investors await clarity on crude oil trends and any central bank commentary on inflation and interest rates.
Institutional Activity
Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) are expected to take a cautious approach today. In recent sessions, FIIs have reduced exposure due to global uncertainty and high crude oil prices, while DIIs continue to provide some support in select sectors.
Market Outlook for the Day
As of mid-morning, market sentiment remains weak due to:
Ongoing Iran-Israel conflict
Crude oil price surge
Muted global cues
Limited domestic triggers
While select stocks are showing strength, broader participation remains low. Defensive and auto sectors may continue to see interest in the second half of the trading session.
Experts expect Volatility to stay high through the day. Traders and investors are advised to monitor geopolitical developments closely, along with movement in crude oil prices and global markets.
Key Takeaways
Sensex and Nifty are trading lower due to rising Middle East tensions and surging oil prices.
IndusInd Bank, Maruti, and Tech stocks are among the top gainers, while Kotak Bank and Power Grid trade in the red.
Oswal Pumps IPO Allotment is likely today, while Arisinfra Solutions opens for subscription, drawing investor attention.
The stock market on June 18, 2025, reflects global anxiety. The ongoing Israel-Iran conflict, a sharp rise in oil prices, and cautious global sentiment are impacting Indian indices. While some sectors show resilience, the broader market remains under pressure. IPO activity in the SME and infrastructure space, however, continues to attract strong demand, showing that investor interest is still active in select themes despite the broader uncertainty.
Markets may remain choppy for the rest of the day, with investors expected to focus on global developments, crude oil price trends, and any new government commentary on inflation or fuel subsidies.