Indian stock markets closed in the red on Tuesday, June 17, dragged down by profit booking in heavyweight stocks and weak global cues. Both benchmark indices—Sensex and Nifty 50—slipped as investors turned cautious ahead of key global events.
The Sensex lost 213 points, or 0.26%, to settle at 81,583.30, while the Nifty 50 declined by 93 points, or 0.37%, to close at 24,853.40.
Mid- and Small-Caps Under Pressure
Broader markets saw deeper cuts. The BSE Midcap index dropped 0.56%, and the Smallcap index fell 0.67%, reflecting broader selling across the board. As a result, the total market capitalisation of BSE-listed companies dropped by over ₹2.5 lakh crore, sliding from nearly ₹450.5 lakh crore in the previous session to ₹448 lakh crore.
What Triggered the Market Decline?
The sell-off was largely driven by:
- Geopolitical tensions: Rising fears of an escalation in the Middle East, particularly between Israel and Iran, rattled global sentiment.
- Cautious stance ahead of the Fed meeting: Investors chose to stay on the sidelines before the U.S. Federal Reserve’s key interest rate decision scheduled for June 18.
- Rising crude prices: Brent crude spiked due to geopolitical tensions, a worrying sign for India given its high dependence on oil imports, which could weigh on corporate earnings.
“The benchmark equity index experienced moderate losses amid rising risk of an escalation of conflicts in the Middle East ahead of the FOMC meeting. This uncertainty pushed Brent crude prices higher—an unfavourable development for India, given its heavy reliance on oil imports, thereby dampening earnings growth,” noted Vinod Nair, Head of Research at Geojit Financial Services.
Nifty 50: Top Gainers
Out of 50 stocks, only 11 managed to stay in the green. The top performers included:
- Tech Mahindra: +1.66%
- Infosys: +0.87%
- Asian Paints: +0.86%
Wipro ended the session flat.
Nifty 50: Top Losers
The biggest drags on the index were:
- Adani Enterprises: -2.31%
- Eicher Motors: -2.06%
- Dr. Reddy’s Laboratories: -2.00%
What to Watch Next
All eyes are now on the U.S. Federal Reserve’s policy decision, which could set the tone for global markets in the coming days. Investors are also keeping a close watch on geopolitical developments that continue to inject volatility into the markets.
Stay tuned for more updates as the market reacts to key global and domestic triggers.
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