Sensex Plunges Over 290 Points from Day’s High, Nifty Falls Below 25,050 Amid Global Jitters

Mumbai, June 12, 2025: The Indian stock market experienced a significant reversal on Thursday, with benchmark indices erasing earlier gains and dipping during the market session on June 12th. At around 12:45 P.M., Sensex was trading at ₹82,219.65, down 295.46 points from the opening price of ₹82,571.67. On the other hand, Nifty was trading 97.35 points lower at ₹25,044, down from the opening price of ₹25,164.45.

The BSE Sensex had opened on a positive note, rising 145.9 points to touch 82,661.04 in early trade. The NSE Nifty also moved higher by 54.8 points, hitting an intraday high of 25,196.20. However, the optimism was short-lived as selling pressure intensified.

Leading the decline were major stocks such as Infosys, Eternal, Tech Mahindra, and Tata Motors, contributing to the broader market’s negative sentiment.

Key Factors Behind the Market Decline

1. Renewed Tariff Threat from the US

A primary concern for investors was a statement from President Donald Trump, indicating plans to reintroduce unilateral tariffs. Trump’s mention of letters to trading partners ahead of a July 9 deadline has reignited global trade uncertainty. While the UK has a framework deal and China is under a temporary truce, the broader threat of tariffs looms.

2. Escalating Middle East Tensions

The geopolitical situation in the Middle East has added to the risk-off sentiment. The US authorized the evacuation of some personnel from Iraq and approved military family departures from key regions due to fears of an Israeli strike on Iran. This has heightened concerns about potential oil supply disruptions.

3. Foreign Institutional Investor (FII) Selling

FIIs continued to be net sellers on Wednesday, offloading equities worth ₹446.31 crore. This consistent selling by foreign investors has placed additional pressure on domestic equities.

4. Weak Global Market Cues

Major Asian indices, including Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng, all traded lower by up to 1 percent. US markets also closed weaker overnight, and Wall Street futures were in the red during Indian trading hours, reflecting a broad negative sentiment globally.

5. Surge in Crude Oil Prices

Crude oil prices surged over 4 percent on Wednesday, exacerbating inflationary concerns. Brent crude rose $2.90 (4.3%) to $69.77 a barrel, while WTI jumped $3.17 (4.9%) to $68.15. This increase is heavily influenced by the escalating tensions in the Middle East, which have led to concerns about higher input costs for Indian industries.

Technical Outlook

Market experts suggest that the broader Nifty index maintains a medium-term uptrend unless it breaks below critical support levels. s long as the index holds above 25,056, a recovery towards 25,460-26,200 remains a possibility. However, a decisive breach below 24,900 could signal further weakness in the market.

What’s Ahead? 

Markets are likely to remain volatile in the near term, amid global uncertainty, rising crude prices, and continued foreign institutional investor (FII) selling. Investors will closely monitor any further comments from the US regarding tariffs and developments in the Middle East. On the domestic front, movement in heavyweight IT and auto stocks, inflation data, and RBI policy cues may influence sentiment. A bounce is possible if Nifty holds above 25,000.

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