Sensex, Nifty Fall as Israel-Iran Tensions Soar; Oil Prices Surge Amid Trump’s Warning to Tehran

Sensex, Nifty Fall as Israel-Iran Tensions Soar; Oil Prices Surge Amid Trump’s Warning to Tehran

June 18, 2025 – Mumbai:

Indian equity markets extended their downward trend on Wednesday as escalating tensions in the Middle East rattled global investor sentiment. The BSE Sensex slipped by 138.64 points to close at 81,444.66, while the NSE Nifty ended 41.35 points lower at 24,812.05.

IT, Financials, FMCG Among Top Drags

Weakness in IT, Financials, and FMCG stocks pulled down key indices. Notable laggards on the Sensex included TCS, Adani Ports, HUL, Bajaj Finserv, Nestle, NTPC, ICICI Bank, Tata Motors, L&T, and HCL Tech.

Nifty Media, IT, Metal Indices Crack

On the NSE, the Nifty Media index declined by 1.27%, emerging as the top sectoral loser, followed by sharp falls in IT and Metal indices during the final hour of trade.

Global Markets on Edge Ahead of Fed Decision

Investors are also cautious ahead of the U.S. Federal Reserve's key policy announcement. The Fed’s two-day meeting on interest rates concludes today, with market participants awaiting Chair Jerome Powell's guidance on inflation and future rate actions.

Wall Street Drops on Oil Shock, Conflict Worries

Global markets took a hit, too. On Tuesday, Wall Street indexes slid, triggered by rising oil prices and geopolitical concerns. The S&P 500 dropped 0.8% to 5,982.72, the Dow Jones lost 0.7% to 42,215.80, and the Nasdaq Composite shed 0.9% to 19,521.09.

Crude Oil Prices Surge on Israel-Iran Escalation

The intensifying Israel-Iran conflict has pushed Brent Crude prices above $75.70 per barrel, up by over $5 since Israel launched its first strike last Friday. Former U.S. President Donald Trump added fuel to the fire, publicly calling for Iran’s “unconditional surrender,” further heightening market anxiety.

As geopolitical risks mount, equity markets across the globe remain on high alert, with energy prices likely to stay volatile in the near term.

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