SENSEX Crashes by 800 Points, Nifty50 Below 25000 levels As Tensions in the Middle East Escalate

23 June 2025: The Indian equity markets witnessed a significant sell-off during the early trading hours on Monday as geopolitical tensions in the Middle East escalated over the weekend. With the formal entry of the US into the Israel-Iran conflict and Iran’s warning to block the Strait of Hormuz, Brent crude surged as high as $81.40/barrel.

All the factors combined rattled global investor sentiment. The benchmark SENSEX nosedived over 840 points at its lowest, while the NIFTY50 index broke below the psychologically crucial 25,000 mark during intraday trade.

Market Snapshot

As of 9:40 a.m., the SENSEX was trading at 81,690, down 721 points or 0.9%. The NIFTY50 fell by 218 points or 0.87% to 24,895, touching an intraday low of 24,858.

Key Factors Behind the Market Decline

1. Geopolitical Escalation in the Middle East

Markets witnessed a critical fall after the US entered the conflict and attacked Iranian nuclear sites. U.S. President Donald Trump declared the sites “completely and fully obliterated” but did not confirm whether further attacks would follow. The absence of congressional approval and threats of Iranian retaliation have fueled fears of a broader regional conflict.

2. Spike in Crude Oil and Gold Prices

Brent crude surged by 2.6%, following an initial spike of up to 5.7%, driven by concerns that Iran could block the Strait of Hormuz, a critical oil shipping route. Simultaneously, gold prices rose by 0.8% as investors look for risk-free investments amid increased geopolitical tensions.

3. Global Market Weakness

Asian indices also reflected nervousness. Japan’s Nikkei declined 0.52%, China’s Shanghai Composite dropped 0.1%, Hong Kong’s Hang Seng slid 0.78%, and South Korea’s KOSPI fell 0.7%.

4. Broad-Based Selling Pressure

Selling was witnessed across sectors. The NIFTY IT index fell 1.68%, leading the sectoral losses. Other major sectors such as Auto, Banking, Financial Services, Metal, and Oil & Gas also declined between 0.5% and 1%.

Mid- and small-cap stocks were not spared either, with the NIFTY Midcap 100 and NIFTY Smallcap 100 down 0.32% and 0.10%, respectively.

Notable Movers in NIFTY50

• Top Gainer: Infosys fell 2.83% to ₹1,577, emerging as the top loser despite a positive mention. The fall followed Accenture’s report of a 6% decline in new bookings to $19.7 billion in Q3.
• Other Major Losers: Shriram Finance (-2.35%), JSW Steel (-1.82%), Tata Consultancy Services (-1.80%), Hero MotoCorp (-1.69%), Mahindra & Mahindra (-1.59%).
• Notable Gainers: Bharat Electronics, Nestlé, Trent, and ONGC managed to buck the trend and trade in the green.

Outlook

With Middle East tensions showing no immediate resolution and crude oil prices under upward pressure, Indian equities may continue to face volatility. Investors will likely keep a close watch on global developments and safe-haven flows in the days ahead. Sectoral pressure, especially from the IT and Financial Services sectors, has also slowed the market. Weakness in global tech and bank sectors, mirroring U.S. and regional jitters, compounded the fall.

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