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Sensex falls 653 pts, Nifty down 192 pts as tensions rise in West Asia after US strikes on Iran
The Indian stock market starts the week on a weak note today, Monday, June 23, 2025. Both the BSE Sensex and Nifty50 trade lower as investors react to the growing conflict in West Asia. The market mood turns cautious after the United States bombs three nuclear facilities in Iran, supporting Israel in the ongoing regional war.
Key Index Performance
By the afternoon session, the Sensex stands at 81,747 points, which is 653 points lower or a drop of about 0.79 per cent. The Nifty50 also sees a fall of 192 points, trading at 24,920, down 0.76 per cent from its last close.
The market opens with weakness and continues to slide as the session progresses. Investors are worried about the geopolitical tensions and their possible impact on the global economy and energy supplies.
What’s Driving the Decline?
The main reason behind today’s decline is the US military strike on Iran. On Sunday, the US bombs three major Iranian nuclear sites, Fordow, Natanz, and Isfahan. These attacks increase tensions in the region and raise fears of a larger war in West Asia.
In response, Iran vows retaliation and warns the US of “dire consequences”. Reports suggest that the Iranian Parliament approves the closure of the Strait of Hormuz, a critical route for global oil shipments. This move could disrupt the supply of oil worldwide and lead to further instability.
Sector Performance
The weakness in the market today is broad-based, with almost all sectors trading in the red. The Nifty IT index falls the most, down 1.53 per cent. Big companies like Infosys, HCLTech, and TCS drag the index lower as global uncertainties raise concerns about technology demand.
The Nifty Auto index also slips by 1.06 per cent. Auto makers face worries over rising input costs if oil prices continue to climb. Similarly, the Nifty FMCG index declines by 0.52 per cent as investors book profits in defensive names.
One bright spot is the Nifty Media index, which gains 3 per cent. Some media companies benefit as news consumption rises during periods of global tension.
Defence Stocks in Focus
Amid the sell-off, defence-related stocks are doing well. The Nifty India Defence index gains 1.3 per cent. Companies like Paras Defence, Garden Reach Shipbuilders, Data Patterns, DCX Systems, Bharat Dynamics, and Astra Microwave Systems rose between 1 per cent and 3 per cent.
Investors expect higher defence spending and new orders as governments strengthen security measures in response to the geopolitical situation.
Broader Markets Hold Up Better
While the large-cap indices fall sharply, broader markets show resilience. The Nifty MidCap index is slightly higher by 0.12 per cent, and the Nifty SmallCap index gains 0.41 per cent. Some investors use the opportunity to buy into mid and small-cap stocks, which have lagged large caps in recent weeks.
Sensex Gainers and Losers
On the Sensex, only a few stocks managed to stay in the green today. Bharat Electronics (BEL), Trent, Eternal (Zomato), and Bharti Airtel are among the gainers. BEL rises the most, up about 1.89 per cent, as demand for defence equipment picks up.
On the other hand, Infosys, Hindustan Unilever, HCLTech, TCS, and Reliance Industries are the top losers. These companies lose between 1 per cent and 2 per cent as investors move money away from large-cap heavyweights to safer assets or cash.
Oil Prices Surge
In the commodities market, oil prices jump as traders react to the news from West Asia. Brent crude futures are up by more than 2 per cent, trading at around $78.60 per barrel. US WTI crude futures also climb, now at about $75.44 per barrel.
The rise in oil prices adds to market concerns because expensive crude can lead to higher inflation, higher costs for companies, and pressure on consumers.
Investor Sentiment and Outlook
Investor sentiment remains cautious today. Many market participants prefer to wait and watch how the situation in West Asia unfolds before taking big bets. The fear is that if the conflict expands, it could hit global trade, oil supply, and economic growth.
Foreign investors also seem to be pulling back from Indian equities for now, worried about higher volatility. Domestic institutional investors are seen as providing some support at lower levels, but not enough to stop the slide in key indices.
Analysts say that the market could stay under pressure in the near term if tensions between Iran, the US, and Israel rise further. Much will depend on how oil prices move and whether global central banks respond to any sharp rise in inflation risks.
What to Watch Ahead
Looking forward, investors will closely track:
- Any further military actions in West Asia
- Iran’s actual steps following its threats about the Strait of Hormuz
- Oil price trends and their impact on inflation
- Global market reactions, especially in the US and Europe
- FII (Foreign Institutional Investor) activity in Indian markets
There is also attention on upcoming domestic economic data, including the current account numbers, and whether the RBI will comment on the situation in its next policy meeting.
In summary, the Indian stock market opens the week on a cautious note. The Sensex and Nifty trade lower as investors react to rising tensions in West Asia following US strikes on Iranian nuclear sites. Oil prices rise, and most sectors fall, except defence and media.
The market is expected to stay volatile until there is more clarity on the geopolitical front. Investors are advised to stay alert and manage risk carefully in these uncertain times.