Indian equity markets ended lower on Friday, trimming deeper intraday losses but still closing in the red as rising geopolitical tensions in the Middle East—sparked by Israel’s military strike on Iran—spooked investors and led to a sharp risk-off sentiment across global markets.
The S&P BSE Sensex dropped 573.38 points, or 0.70%, to end at 81,118.60, while the NSE Nifty50 fell 169.60 points, or 0.68%, to settle at 24,718.60.
According to Vinod Nair, Head of Research at Geojit Financial Services, the losses were driven largely by:
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Weak global cues
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Rising crude oil prices
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Foreign institutional investor (FII) outflows
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Surging demand for safe-haven assets like gold
Key Highlights:
Top Sensex Gainers:
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Tech Mahindra: +1.02%
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TCS: +0.36%
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Sun Pharma: +0.23%
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Maruti Suzuki: +0.16%
Only 4 of the 30 Sensex stocks ended in positive territory.
Top Sensex Losers:
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Adani Ports: -2.61%
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ITC: -1.67%
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IndusInd Bank: -1.52%
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HDFC Bank: -1.15%
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Titan Company: -0.95%
Broader Market:
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Nifty Midcap 100: -0.37%
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Nifty Smallcap 100: -0.49%
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India VIX (Volatility Index): +7.59% — indicating rising investor anxiety
Sectoral Performance:
Gainers:
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Nifty Consumer Durables: +0.70%
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Nifty Auto: +0.30%
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Nifty Media: +0.17%
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Nifty Realty: +0.06%
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Nifty Healthcare: +0.04%
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Nifty IT: +0.02%
Losers:
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Nifty PSU Bank: -1.18%
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Nifty FMCG: -1.05%
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Nifty Private Bank: -0.91%
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Nifty Financial Services: -0.77%
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Nifty Oil & Gas: -0.73%
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Nifty Metal: -0.68%
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Nifty Pharma: -0.23%
Macroeconomic Context:
India’s CPI inflation for May came in below the RBI’s comfort zone, suggesting a benign domestic inflation outlook, which under normal conditions would be market-positive. However, these gains were negated by external factors:
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Brent crude prices surged to nearly $76/barrel, the highest in 2025 so far, heightening inflation concerns.
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Investors shifted towards safe-haven assets like gold, further reflecting growing risk aversion.
Outlook:
Market experts caution that sentiment is likely to remain fragile in the near term. With geopolitical uncertainty in the Middle East, continued FII outflows, and higher oil prices, investors are expected to stay cautious, with any recovery likely to be data- and news-driven. Unless tensions ease, volatility may persist heading into the next week.
