- Sensex drops 213 pts, Nifty sheds 93 pts; IT sector bucks the trend
- Iran-Israel conflict escalates, spooks global markets
- Trump-Starmer trade deal lifts hopes, but steel tariffs unresolved
Indian equity benchmarks ended lower on June 17, 2025, as escalating Middle East tensions and profit booking dragged indices into the red. The Sensex closed down 212.85 points at 81,583.30, while the Nifty 50 slipped 93.10 points to 24,853.40.
In contrast, the global market mood was dominated by geopolitical risk. US futures declined sharply amid reports of fresh missile strikes by Iran and a downed Israeli drone.
Geopolitics Rattles Markets as Investors Brace for Volatility
The Indian stock market saw broad-based selling on Tuesday, with only the IT sector providing stability. Defensive stocks in healthcare and metal sectors turned out to be major laggards, and investors chose to lock in profits amid uncertainty.
Global tensions flared again as Iran reportedly launched fresh missile strikes on Israel and brought down an Israeli drone near a sensitive nuclear facility. The resulting risk-off sentiment hit global equities, with US futures extending their losses despite rumors of ceasefire negotiations.
Adding to the complex macroeconomic picture, the Bank of Japan left interest rates unchanged but surprised investors with an announcement to scale back its bond-buying program from 2026. This indicates a slight policy tightening in the pipeline, adding to global rate normalization worries.
Meanwhile, trade diplomacy offered a minor silver lining. UK Prime Minister Keir Starmer and US President Donald Trump agreed to implement key provisions of their recent trade pact. The move is expected to benefit the automotive and agriculture sectors but fell short of resolving steel tariff disputes—an issue the UK sees as critical.
While IT stocks helped cushion domestic losses, the overall market sentiment remains fragile amid intensifying geopolitical uncertainty and macroeconomic shifts.
“Markets hate uncertainty more than bad news.” — Warren Buffett
