Sensex-Drops-Nifty-50-Below-24500Major indices like the Sensex and Nifty 50 dropped sharply during the current trading session  

 

The Indian stock market experienced a significant fall on June 13, 2025. The market faced heavy selling due to global tensions, rising oil prices, weakness in the Indian currency, and increasing investor fear. Major indices like Sensex and Nifty 50 dropped sharply during the trading session. 

 

Market Performance 

 

The Bombay Stock Exchange (BSE) Sensex index declined by nearly 1.5% during the trading session. The index fell by around 1,000 to 1,300 points, reaching levels between 80,350 and 81,000. Similarly, the National Stock Exchange (NSE) Nifty 50 index also declined by about 1.5% to 1.7%, touching lows close to 24,473 and trading between 24,500 and 24,700. 

The broad weakness reflected concerns across global and domestic markets. Both large-cap and mid-cap stocks saw selling pressure, indicating that investors were moving out of risky assets due to growing uncertainty. 

 

Key Reasons Behind the Market Fall 

 

Rising Tensions Between Israel and Iran 

 

A fresh military conflict started between Israel and Iran. An airstrike by Israel on Iranian nuclear facilities led to a sudden rise in geopolitical risk across global financial markets. Investors feared that the conflict could spread, disturb oil supply chains, and increase instability in the Middle East region. 

 

Surge in Oil Prices 

 

Following the conflict, Brent crude oil prices jumped sharply, gaining between 9% to 13% during the week. The rise in oil prices is a major concern for India, which imports most of its crude oil needs. Higher oil prices lead to higher inflation, increase import costs, and put pressure on the country’s foreign exchange reserves. 

 

Rupee Depreciation and RBI Action

 

The Indian rupee weakened to around ₹86.20 per US dollar, reaching a two-month low. To control the fall, the Reserve Bank of India (RBI) stepped in and sold US dollars in the currency market. This intervention helped stabilise the rupee slightly, bringing it closer to ₹86.05 against the dollar by mid-session.

 

Increase in Market Volatility 

 

The India VIX, which measures market volatility, rose by around 8% to 10%. It touched levels between 14 and 15.1. Rising volatility shows that investors are nervous and expecting more uncertainty shortly. 

 

Broad-Based Sectoral Decline 

 

Oil and Gas Companies: Stocks of companies such as BPCL, HPCL, and IOC dropped by around 3% to 6%. Higher crude prices create pressure on their profit margins, as their cost of imports increases. 

Aviation Sector: Shares of airlines like InterGlobe Aviation (IndiGo) and SpiceJet fell by 4% to 5%. Higher oil prices increase fuel costs, which directly affect airlines' profitability. Additionally, a tragic Air India plane crash added further pressure on aviation stocks. 

Power Sector: Power companies also witnessed declines, as overall market sentiment remained weak. 

Defence Sector: Defence-related companies such as HAL, BDL, BEL, and IdeaForge performed better, gaining between 3% to 8%. In times of global conflict, defence companies often attract investor interest due to the increased importance of military capabilities. 

 

Market Expert Views 

 

Market analysts have warned that volatility may continue for the short term. The ongoing tensions in the Middle East, rising oil prices, and global uncertainty will likely keep investors cautious. 

Some analysts suggested that certain stocks may offer opportunities for selective buying during this market correction. Companies such as BSE, ICICI Bank, Torrent Power, HCL Tech, and Reliance Industries have been mentioned as potential buys for investors with a higher risk appetite and short-term trading approach. 

There is also growing interest in companies focusing on renewable energy and infrastructure development. Stocks like Sterling and Wilson Renewable Energy and Prince Pipes & Fittings have been highlighted due to India’s push for sustainable growth and infrastructure expansion. 

 

Shift in Investment Strategy 

 

The market is now moving from high-risk momentum investing to safer, quality-based investing. In 2024, many investors earned high returns from small-cap and multibagger stocks. However, in 2025, only around 10 multibagger stocks have doubled in value so far, showing a clear slowdown in such opportunities. 

As market valuations have become high and global risks are rising, investors are now focusing on companies with stable earnings, strong balance sheets, and lower debt. 

 

Market Snapshot 

 

Index/Indicator  Value Range  Change 
Sensex  80,350 – 81,000  Down 1.0% – 1.6% 
Nifty 50  24,473 – 24,700  Down 1.0% – 1.7% 
India VIX  14 – 15.1  Up 8% – 10% 
Brent Crude Oil  $75 – $78 per barrel  Up 9% – 13% (weekly gain) 
USD/INR (Rupee)  ₹86.00 – ₹86.20  Weakest in 2 months 

 

The broader market indices, including mid-cap and small-cap segments, were also down between 1.2% and 2%. Government bond yields moved higher, with the 10-year benchmark yield rising to nearly 6.32%. This reflects investor concerns over inflation and rising oil prices. 

 

Near-Term Outlook

 

Geopolitical Developments 

 

The situation between Israel and Iran will continue to play a major role in market sentiment. Any further escalation may lead to more pressure on global financial markets and energy prices. 

 

Currency and RBI Moves 

 

The rupee may remain under pressure if oil prices stay elevated. The RBI is expected to actively intervene to prevent excessive depreciation of the currency, which could otherwise hurt inflation and import costs. 

 

High Volatility Expected 

 

With the India VIX rising sharply, market volatility is likely to stay high. Traders may adopt cautious strategies, focusing on stocks that have strong fundamentals and defensive business models. 

 

Global Factors 

 

Other important factors include upcoming corporate earnings in India, global economic data, inflation numbers from major economies, and the U.S. Federal Reserve’s policy direction. Global fund flows will remain a key trigger for the Indian stock market movement. 

 

Outlook

 

The Indian stock market faced strong selling pressure on June 13, 2025, led by global geopolitical tensions and rising oil prices. Both Sensex and Nifty 50 declined sharply, while the rupee weakened, and market volatility increased. Most sectors witnessed selling, with some gains seen in defence stocks. 

The market has entered a phase where investors are becoming more careful and preferring companies with strong financial stability. The immediate future remains uncertain and will largely depend on how global political developments unfold, oil prices behave, and how effectively domestic policies are managed.