Markets slump on heightened tensions in Middle East; Sensex drops 500 pts
Mumbai, Jun 23 (PTI): Stock market benchmark indices Sensex and Nifty tumbled on Monday, as intensifying tensions in the Middle East after the US bombed three major nuclear sites in Iran unnerved investors.
Besides, selling pressure in IT, tech and auto stocks amid elevated global crude prices dented market sentiments, traders said.
After losing over 900 points in day trade, the 30-share index recovered some lost ground to close with a loss of 511.38 points or 0.62 per cent at 81,896.79.
During the day, it tumbled 931.41 points or 1.13 per cent to 81,476.76.
As many as 2,204 stocks declined, while 1,854 advanced and 182 remained unchanged on the BSE.
The 50-share NSE Nifty dropped 140.50 points or 0.56 per cent to 24,971.90.
"The entry of the US into the Israel-Iran conflict heightened tension as panic selling by investors triggered major correction in early trade. Also, if oil prices shoot up rapidly due to the ongoing war, higher import bills would lead to a fast decline in the local currency against the dollar and weigh on inflation.
"However, FIIs turning out buyers of local shares worth over Rs 10,000 crore in the past 4 sessions shows that India's strong fundamentals continue to attract foreigners despite global uncertainty," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
The US bombed three major nuclear sites -- Fordow, Natanz and Isfahan -- in Iran, directly engaging itself in the Israel-Iran conflict.
From the Sensex pack, HCL Tech, Infosys, Larsen & Toubro, Mahindra & Mahindra, Hindustan Unilever, ITC, Tata Consultancy Services and Maruti were the biggest laggards.
In contrast, Trent, Bharat Electronics, Bajaj Finance and Kotak Mahindra Bank were among the gainers.
The BSE smallcap gauge climbed 0.57 per cent, and the midcap index rose 0.20 per cent.
Among BSE sectoral indices, BSE Focused IT lost 1.48 per cent, IT tanked 1.46 per cent, teck (1.10 per cent), auto (0.88 per cent), FMCG (0.62 per cent), telecommunication (0.50 per cent) and bankex (0.38 per cent).
Capital Goods jumped 0.94 per cent, services (0.73 per cent), metal (0.71 per cent), commodities (0.46 per cent) and consumer durables (0.38 per cent).
"Last Friday, markets buildup in anticipation of easing Middle East tensions, following the US announcement of a two-week window to deliberate its involvement in the Israel-Iran conflict. However, the unexpected US airstrike on Iran’s nuclear facilities over the weekend disrupted those expectations, triggering a sharp rise in crude oil prices and leading to consolidation in the domestic equity market," Vinod Nair, Head of Research, Geojit Investments Limited, said.
In Asian markets, South Korea's Kospi and Japan's Nikkei 225 index settled lower, while Shanghai's SSE Composite index and Hong Kong's Hang Seng ended higher.
European markets were trading lower in mid-session.
US markets ended mostly lower on Friday.
Global oil benchmark Brent crude climbed 0.49 per cent to USD 77.39 a barrel.
Despite the initial setback, the market recovered some of its losses, supported by gains in capital goods and metal stocks, as fears of an immediate oil supply disruption remained low, he added.
Foreign Institutional Investors (FIIs) bought equities worth Rs 7,940.70 crore on Friday, according to exchange data.
On Friday, the 30-share BSE Sensex surged 1,046.30 points or 1.29 per cent to settle at 82,408.17. The Nifty climbed 319.15 points or 1.29 per cent to 25,112.40.
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PM Modi arrives in Netherlands on second leg of his five-nation tour
Amsterdam (PTI): Prime Minister Narendra Modi arrived in the Netherlands on Friday on the second leg of his five-nation tour, during which he will hold talks with his Dutch counterpart Rob Jetten to further deepen bilateral cooperation in areas such as trade, technology, defence and renewable energy.
The prime minister arrived in the Netherlands after a brief stopover of around two-and-a-half hours in the UAE, where he held talks with UAE President Mohamed bin Zayed Al Nahyan in Abu Dhabi.
Modi's visit to the European nation from May 15 to 17 is his second trip to the country after his 2017 visit and comes at what officials described as an "important juncture" in India-Netherlands ties.
During the visit, Prime Minister Modi will hold bilateral talks with PM Jetten and will also meet King Willem-Alexander and Queen Maxima.
Modi is also expected to address the Indian community and interact with leading Dutch business leaders during the visit.
MEA officials said the visit carries a “rich and substantive agenda” and is expected to consolidate the strategic dimensions of the partnership that have emerged through sustained engagement between the two countries.
India and the Netherlands have significantly expanded cooperation in recent years beyond traditional sectors such as trade, investment and the priority areas of water, agriculture and health.
The partnership has grown in strategic sectors, including technology, innovation, defence, security, semiconductors, renewable energy, education and the maritime domain, the MEA said.
The Netherlands is one of India’s largest trade destinations in Europe, with bilateral trade valued at USD 27.8 billion in 2024-25. It is also India’s fourth-largest investor, with cumulative foreign direct investment amounting to USD 55.6 billion, officials said.
People-to-people ties remain a key pillar of the bilateral relationship. The Netherlands is home to more than 90,000 non-resident Indians and persons of Indian origin, besides over 200,000 members of the Suriname-Hindustani community. Around 3,500 Indian students are currently enrolled in Dutch universities.
Officials noted that Modi's visit to the Netherlands and three other European nations -- Sweden, Norway, and Italy -- comes against the backdrop of the India-EU Free Trade Agreement finalised earlier this year and the India-EFTA Trade and Economic Partnership Agreement signed in 2025.
