Indian Markets React to Global Uncertainty

The Indian stock market faced a major jolt on June 13 as investors reacted sharply to a double dose of global distress: Israel’s airstrikes on Iran’s nuclear sites and the Air India plane crash that killed 241 people in Ahmedabad.

The BSE Sensex plunged 1,123 points to settle at 79,001, while the Nifty50 tanked 337 points to close below 24,550, sparking concerns of extended volatility in the days ahead.

What Triggered the Market Slide?

• The geopolitical flare-up between Israel and Iran ignited global fears of a Middle East conflict spiraling out of control.
• The Air India crash, with heavy casualties and global implications, shook investor confidence in the Indian aviation and tourism sectors.
• Weak cues from US and Asian markets, driven by oil price spikes and safe-haven shifts, further worsened the situation.

Sector-Wise Breakdown: Who Lost the Most?

• Aviation & Tourism: IndiGo and SpiceJet fell over 4% post-crash.
• Oil & Gas: Reliance dipped 2.3% as Brent crude prices soared past $92/barrel.
• Financials: HDFC Bank and SBI lost 1.8% and 2.1% respectively.
• Metals & Infrastructure: Tata Steel and L&T also saw declines due to global demand fears.

Expert Analysis: How Long Will This Last?

Market analysts expect short-to-mid-term volatility depending on:

• Escalation or de-escalation in the Iran-Israel conflict.
• Global central banks’ responses, especially the US Fed.
• Domestic macroeconomic indicators including monsoon impact and inflation data.

Siddharth Bhargava, Director at InCred Equities, notes:

Global Market Link: What Else Is Weighing on Dalal Street?

• NATO emergency meetings and UN Security Council consultations over Iran’s nuclear infrastructure strike created a jittery global sentiment.
• Flight diversions and oil shipping risks in the Strait of Hormuz have impacted global logistics and energy prices.
• Foreign Institutional Investors (FIIs) were net sellers worth ₹2,736 crore today.