Sensex Crashes 511 Points, Nifty Breaches 25,000 as US Strikes on Iran Fuel Global Selloff

Mumbai, 23 June 2025: Indian equities plunged on Monday as escalating geopolitical tensions between the United States and Iran triggered a wave of global risk aversion. The sharp fall followed US airstrikes on three Iranian nuclear facilities over the weekend, deepening investor fears and prompting widespread sell-offs across sectors.

Benchmark Indices End Deep in Red

The BSE Sensex nosedived as much as 931.41 points during intra-day trade, before recovering partially to end 511.38 points lower, closing at 81,896.79, a decline of 0.62%. Meanwhile, the NSE Nifty slipped 140.50 points, or 0.56%, to settle at 24,971.90, breaching the crucial 25,000 mark.

The trigger was a coordinated US military strike on Fordow, Natanz, and Isfahan nuclear facilities in Iran — a significant escalation in the ongoing Israel-Iran conflict. The attack reignited fears of wider regional instability, with potential knock-on effects on global supply chains and energy markets.

Key Losers and Select Gainers

The sell-off was broad-based, with heavyweights like HCL Technologies, Infosys, Larsen & Toubro, Mahindra & Mahindra, Hindustan Unilever, ITC, TCS, and Maruti leading the decline.

However, a few counters bucked the trend. Notable gainers included Trent, Bharat Electronics, Bajaj Finance, and Kotak Mahindra Bank, which lent some support to the indices amid heightened volatility.

Global Cues Remain Unsettled

Asian markets exhibited mixed performance. While South Korea’s Kospi and Japan’s Nikkei 225 ended lower, Shanghai’s SSE Composite and Hong Kong’s Hang Seng managed to close in the green. European equities, however, were trading in the red during mid-session as the geopolitical backdrop weighed heavily on sentiment.

Meanwhile, Brent crude prices climbed 0.49% to USD 77.39 per barrel, reflecting investor concerns over possible disruptions in oil supplies through the Middle East.

FIIs Stay Bullish Despite Risk-Off Mood

According to official data, Foreign Institutional Investors (FIIs) remained net buyers on Friday, purchasing equities worth ₹7,940.70 crore. However, this buying momentum may face near-term headwinds as global tensions rise.

Sharp Reversal After Friday’s Optimism

The sharp correction marks a dramatic turnaround from Friday’s rally, when the Sensex had jumped 1,046.30 points (1.29%) to close at 82,408.17, and the Nifty surged 319.15 points (1.29%) to 25,112.40. Markets were then buoyed by hopes of easing tensions — optimism that proved short-lived following the weekend’s unexpected developments.

Oil-Linked Sectors, Defence Stocks in Focus

While markets slumped, defence-related stocks such as Zen Technologies and Bharat Electronics attracted interest, with investors betting on increased domestic defence spending amid rising regional security risks.

At the same time, sectors linked to crude oil, such as aviation, paints, chemicals, and auto, could face renewed margin pressure if oil prices extend their upward trajectory. This could particularly impact OMCs and aviation stocks, which are sensitive to fuel cost swings.

Market Outlook: Volatility to Persist

With geopolitical risks intensifying and no immediate signs of diplomatic resolution, analysts expect continued volatility in Indian equities, particularly across sectors exposed to global markets and input cost fluctuations.

Traders and investors are advised to keep a close eye on further developments in the Middle East, oil price movements, and any central bank commentary globally, which may influence sentiment in the sessions ahead.

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