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Markets fall for 2nd straight day amid Iran-Israel conflict
Jun-13-2025

Falling for the second day in a row, Indian equity benchmarks ended over half percent lower on Friday, as weak global markets and a spike in Brent crude oil prices after Israel attacked Iran's capital weighed on investor sentiment. However, selective buying in heavyweights helped trim some of the losses as the session progressed.

Some of the important factors in today’s trade:

Foreign fund outflows: Foreign institutional investors (FIIs) offloaded equities worth Rs 3,831.42 crore on a net basis on Thursday, according to exchange data.

Rupee falls against US Dollar: Indian rupee plummeted sharply against the US dollar due to a spike in global oil prices and a firm dollar amid rising tensions in the Middle East following Israel's attack on Iran's nuclear sites.

India inflation hits 6-year low of 2.82%: The government data showed retail inflation dipped to an over six-year low of 2.82 per cent in May mainly due to subdued prices of food items, including vegetables, fruits, and protein-rich items.

India open to mutually beneficial arrangements on QCOs with trusted partners: Commerce and Industry Minister Piyush Goyal has said that India is open to mutually beneficial arrangements on implementing norms related quality standards with its trusted trading partners. 

Weak global cues: European markets were trading lower as heightened Middle East tensions offset encouraging inflation data from Germany and France. Asian markets settled down after Israel conducted 'pre-emptive' strikes on Iran; targeting several nuclear and military assets.  

Finally, the BSE Sensex fell 573.38 points or 0.70% to 81,118.60 and the CNX Nifty was down by 169.60 points or 0.68% to 24,718.60.  

The BSE Sensex touched high and low of 81,238.68 and 80,354.59 respectively. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.32%, while Small cap index was down by 0.30%.

The few gaining sectoral indices on the BSE were Realty up by 0.13% and Healthcare up by 0.08%, while Bankex down by 1.01%, FMCG down by 0.94%, Utilities down by 0.91%, Metal down by 0.81% and Power down by 0.75% were the top losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 1.83%, Tech Mahindra up by 1.02%, TCS up by 0.38%, Maruti Suzuki up by 0.16% and Sun Pharma up by 0.10%. On the flip side, Adani Ports &SEZ down by 2.71%, ITC down by 1.67%, SBI down by 1.64%, HDFC Bank down by 1.15% and Titan Company down by 0.95% were the top losers.

Meanwhile, China has hinted at holding talks with India over its restrictions on export of rare earth materials, and said it is willing to enhance dialogue and cooperation with relevant countries to keep industrial supply chains stable. China’s recent restrictions on the exports of key metals caused widespread disruption in the manufacturing of automobiles and semiconductor chips in a host of countries, including India. Chinese Foreign Ministry spokesperson Lin Jian said ‘We are willing to enhance dialogue and cooperation with relevant countries and regions to jointly keep the stability of global industrial and supply chains’.

Meanwhile, the Ministry of External Affairs (MEA) said it is in touch with the Chinese side to bring predictability in supply chain for trade, consistent with international practices. It said ‘We have been in touch with the Chinese side, the Chinese Ministry of Commerce and general administration of customs in early April, as you would be aware, had announced the decision to implement export controls on certain rare earth-related items. We are in touch with the Chinese side, both here in Delhi as also in Beijing, to bring predictability in supply chain for trade, consistent with international practices’.

Earlier, Indian Ambassador Pradeep Kumar Rawat met Chinese Vice Minister Sun Weidong and held talks on bilateral issues. They discussed ‘common concerns’ among others. After several months of a squeeze on rare earth metals over which China holds a monopoly, Beijing began clearing selective export licenses reportedly for the US as both countries held talks in London over the issues. Rare earths are a group of metals consisting of 17 elements. Though present in several counties, their extraction is costly and messy, causing massive amounts of pollution. According to the International Energy Agency, China accounts for 61 per cent of global mined rare earth production but controls 92 per cent of the global output.

The CNX Nifty traded in a range of 24,754.35 and 24,473.00. There were 11 stocks advancing against 38 stocks declining, while 1 stock remained unchanged on the index.   

The top gainers on Nifty were Bharat Electronics up by 2.00%, ONGC up by 1.28%, Tech Mahindra up by 0.83%, TCS up by 0.38% and Wipro up by 0.38%. On the flip side, Adani Ports &SEZ down by 2.27%, ITC down by 1.67%, SBI down by 1.57%, Hindalco down by 1.49% and Adani Enterprises down by 1.43% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 36.87 points or 0.42% to 8,848.05, France’s CAC fell 84.72 points or 1.1% to 7,680.39 and Germany’s DAX lost 336.63 points or 1.44% to 23,434.82. 

Asian markets settled down on Friday as participants trimmed positions, despite Wall Street’s gains overnight followed by data showing that producer price inflation rose less than expected in May. Market sentiments weakened further after Israel launched unprecedented strikes on Iran, targeting several nuclear and military assets. Israel also declared a state of emergency in anticipation of a missile and drone strike by Tehran and said it has begun intercepting Iranian drones. Japanese shares declined, hit by exporters and tech stocks, and as the yen strengthened. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,377.00

-25.66

-0.76

Hang Seng

23,892.56

-142.82

-0.60

Jakarta Composite

7,166.06

-38.31

-0.53

KLSE Composite

1,518.11

-8.51

-0.56

Nikkei 225

37,834.25

-338.84

-0.90

Straits Times

3,911.42

-10.78

-0.28

KOSPI Composite

2,894.62

-25.41

-0.88

Taiwan Weighted

22,072.95

-214.87

-0.97
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