Synopsis : Indian equity markets witnessed a sharp selloff on June 8 as escalating Middle East tensions, soaring crude oil prices, and a global market rout triggered widespread risk aversion. The Sensex plunged over 700 points, while the Nifty closed below the crucial 23,200 mark amid broad-based selling.
Indian Markets End Deep in the Red
Benchmark indices closed significantly lower on Monday as global geopolitical concerns and weak international cues weighed heavily on investor sentiment.
At the closing bell:
- Sensex fell 719.08 points (0.97%) to close at 73,524.26
- Nifty 50 declined 243.70 points (1.04%) to settle at 23,123.00
The weakness persisted throughout the trading session despite some recovery from intraday lows.
Middle East Conflict Triggers Global Risk-Off Sentiment
Investor concerns intensified after fresh military escalation between Israel and Iran.
Iran launched missiles at Israel overnight, prompting retaliatory strikes and raising fears of a prolonged regional conflict. The developments sparked a sharp selloff across global equity markets and fueled concerns over energy supply disruptions.
Crude Oil Prices Surge
The geopolitical uncertainty pushed crude oil prices sharply higher.
- Brent Crude climbed above $95 per barrel
- WTI Crude surged near $92.50 per barrel
Higher oil prices remain a major concern for India as they can impact inflation, fiscal balances, and corporate profitability.
Global Markets Witness Heavy Selling
Asian markets experienced significant declines:
- South Korea's Kospi plunged nearly 10%, triggering trading halts.
- Japan's Nikkei 225 dropped 3.4%.
- Hong Kong and Chinese markets also traded lower.
Wall Street weakness added to investor anxiety after stronger-than-expected US employment data increased concerns that interest rates may remain elevated for longer.
Broader Markets Underperform
The selloff was not limited to benchmark indices.
- Nifty Midcap 100 fell approximately 1.55%
- Nifty Smallcap stocks also witnessed heavy selling pressure
- Nifty Bank declined around 1%
The broader market remained under pressure as investors reduced exposure to riskier assets.
Top Losers in Nifty 50
Several heavyweight stocks dragged the indices lower.
Major losers included:
- Wipro
- Tata Consultancy Services
- Mahindra & Mahindra
- Hindalco Industries
- Bajaj Finance
Technology, automobile, and metal stocks faced the strongest selling pressure.
Institutional Investors Provide Some Support
Foreign institutional investors continued to remain sellers.
- FIIs sold equities worth Rs 8,776 crore
- DIIs bought equities worth Rs 9,134 crore
Domestic institutional buying helped absorb a significant portion of foreign outflows and prevented a steeper market decline.
Gold and Currency Markets
Safe-haven demand remained strong amid global uncertainty.
- 24-carat gold traded near Rs 1.55 lakh per 10 grams
- The Indian rupee weakened to 94.95 against the US dollar
- The US Dollar Index remained near 100 levels
Adani and Essel Group Outperform
Despite broader market weakness, select business groups delivered positive returns.
- Adani Group companies gained traction, led by Adani Green Energy
- Essel Group emerged as one of the best-performing business groups during the session
Market Outlook
Market participants will closely monitor developments in the Middle East, crude oil price movements, global bond yields, and foreign fund flows over the coming sessions. Continued geopolitical uncertainty could keep volatility elevated in the near term.
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