Market Commentary: Markets in Red on Increased Geopolitical Uncertainty, Rising Crude Oil Prices

Indian equity markets are in red today. This after increased geopolitical tensions due to US bombing of Iranian nuclear sites. At 11:50 a.m. IST, 23rd June, 2025, Nifty 50 is down by 159.04 points or 0.63%. Sensex is down by 564.46 points or 0.68%.

Top Gainers & Losers

Top 3 gainers at Nifty 50 at this time are BEL, Trent and Nestle India. Just 7 out of the 50 stocks at Nifty 50 are gaining at this time. Top 3 losers at Nifty 50 at this time are Infosys, HCL Tech and JSW Steel.

Among broad market indices, Nifty 100 index is the top loser at this time. It is down by 0.67%. Nifty Smallcap 100 index is the top gainer at this time. It is up by 0.29%. Among sectoral indices, Nifty IT index is the top loser at this time. It is down by 1.46%. Nifty Media index is the top gainer at this time. It is up by 2.93%.

Volatility Jumps Up

Volatility has jumped today. Nifty VIX Index is up by 3.40% today, at this time, at 14.14 level. Market risk has increased considerably after the US bombing of Iranian nuclear sites on Saturday night. Oil prices jumped after this. At 11:50 a.m. IST today, WTI crude is up by 1.45%, trading at $74.91 per barrel. Brent crude is up by 1.44%, trading at $78.12 per barrel. India is dependent on imports for meeting around 90% of its crude oil needs.

The risk of disruption to passage of oil coming through Strait of Hormuz has increased after the US bombing. Iran’s strategic location next to Strait of Hormuz gives it the ability to disrupt oil supply through the strait. Much of the oil from Saudi Arabia, Iraq and Kuwait passes through this strait.

The risk before Indian economy is further heightened because India is heavily dependent on Middle East for its LPG needs. More than 66% of the LPG gas in cylinders that are used for cooking in India comes from the Middle East or West Asian region.

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Source: NSE