Markets slump on heightened tensions in Middle East; Sensex drops 500 points

Stock market benchmark indices Sensex and Nifty tumbled on Monday (June 23, 2025), as intensifying tensions in the Middle East after the U.S. bombed three major nuclear sites in Iran unnerved investors.

After losing over 900 points in day trade, the 30-share index recovered some lost ground to close with a loss of 511.38 points or 0.62% at 81,896.79.

During the day, it tumbled 931.41 points or 1.13% to 81,476.76.

The 50-share NSE Nifty dropped 140.50 points or 0.56% to 24,971.90.

The U.S. bombed three major nuclear sites – Fordow, Natanz and Isfahan – in Iran, directly engaging itself in the Israel-Iran conflict.

From the Sensex pack, HCL Tech, Infosys, Larsen & Toubro, Mahindra & Mahindra, Hindustan Unilever, ITC, Tata Consultancy Services and Maruti were the biggest laggards.

In contrast, Trent, Bharat Electronics, Bajaj Finance and Kotak Mahindra Bank were among the gainers.

In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 index settled lower, while Shanghai’s SSE Composite index and Hong Kong’s Hang Seng ended higher.

European markets were trading lower in mid-session.

U.S. markets ended mostly lower on Friday (June 20, 2025).

Global oil benchmark Brent crude climbed 0.49% to $77.39 a barrel.

“Last Friday (June 20, 2025), markets buildup in anticipation of easing Middle East tensions, following the U.S. announcement of a two-week window to deliberate its involvement in the Israel-Iran conflict. However, the unexpected U.S. airstrike on Iran’s nuclear facilities over the weekend disrupted those expectations, triggering a sharp rise in crude oil prices and leading to consolidation in the domestic equity market,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

“Despite the initial setback, the market recovered some of its losses, supported by gains in capital goods and metal stocks, as fears of an immediate oil supply disruption remained low,” he added.

Foreign Institutional Investors (FIIs) bought equities worth ₹7,940.70 crore on Friday (June 20, 2025), according to exchange data.

On Friday (June 20, 2025), the 30-share BSE Sensex surged 1,046.30 points or 1.29% to settle at 82,408.17. The Nifty climbed 319.15 points or 1.29% to 25,112.40.