Sensex plunges 700 pts, Nifty below 24,700 amid Middle East tensions; bank, auto, energy stocks drag

Laggards on the index included Adani Ports, SBI, Shriram Finance, Bajaj Finserv, and Bajaj Auto.

Benchmark indices Nifty and Sensex remained deep in the red on June 13 as heavy selling in banking, FMCG, and auto stocks dragged the market lower. While broader indices also declined, the fall was relatively modest compared to the headline gauges. The lone bright spot was the IT pack, which held firm and offered slight stability in an otherwise fragile session.

The sentiment took a hit as escalating tensions in the Middle East unnerved investors. A pre-dawn Israeli strike on Iran’s capital reignited fears of a broader conflict, rattling global sentiment and weighing heavily on domestic equities. As a result, Crude oil prices surged as much as 10 percent and are up around 14 percent for the week, marking their biggest weekly gain since 2022.

At about 11:35 pm, the Sensex was down 678.15 points or 0.83 percent at 81,013.83, and the Nifty was down 208.20 points or 0.84 percent at 24,680.00. About 1215 shares advanced, 2124 shares declined, and 111 shares remained unchanged.

Follow our LIVE blog for all the latest market updates

"The Israeli strike could have significant economic repercussions if the conflict with Iran drags on. With Israel stating that the operation may continue for several days, Brent crude has already surged nearly 12 percent to $78 a barrel. Prices could climb further if Iran retaliates by closing the Strait of Hormuz, a key oil supply route. The market's reaction will largely hinge on the duration of the conflict, but in the near term, a risk-off sentiment is likely to dominate," V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said.

Defence stocks significantly surged on June 13 as the war between Israel and Iran continued to escalate, fueling hopes of higher defence equipment orders amid heightened global uncertainties. The sharp rise in the share prices pushed the Nifty India Defence index up 2.5 percent to snap a two-day losing streak.

Also read: Israel-Iran Conflict: Geopolitical risk biggest concern for Indian equities, finds Moneycontrol Market Poll

IndiGo and SpiceJet shares crashed up to 4 percent after an Air India Dreamliner en route to London crashed shortly after takeoff from Ahmedabad, killing 241 people. The selloff in aviation stocks was also influenced by rising geopolitical tensions in the Middle East. Global sentiment turned risk-averse after Israel launched a strike on Iran’s capital.

Indian auto ancillary stocks mainly Sona BLW, Samvardhana Motherson, Bosch, and Uno Minda fell up to 2 percent after U.S. President Donald Trump signalled the possibility of raising tariffs on imported vehicles. The move, aimed at boosting domestic manufacturing, has stoked fears of renewed trade tensions and potential ripple effects on global supply chains.

Most sectoral indices on the NSE traded in the red. Banks led the decline, with Nifty PSU Bank falling 1.33 percent and Nifty Bank dropping 1.15 percent. FMCG and private bank indices also slipped over 1 percent each. The auto, infra, metal, and consumer durables indices declined by around 0.9 percent. Energy, pharma, oil & gas, media, and realty stocks posted smaller losses. Meanwhile, the Nifty IT index managed to eke out a modest gain of 0.13 percent. Broader markets also saw some weakness, with the Nifty Midcap 100 and Smallcap 100 down 0.46 percent and 0.45 percent, respectively. Notably, India VIX surged 7.85 percent to 15.12, indicating rising market volatility.

Read more: Operation Rising Lion: Israel strikes Iran’s nuclear and missile sites; top military leaders killed

"A clear drop below 24,700 could lead to a wedge breakdown, opening the door for a fall towards the recent lows of 24,500–24,400. The next session will be crucial from a short-term perspective, especially since such declines often occur on weekly expiry days—making the follow-through move key. On the upside, immediate resistance lies at 25,000, with the next hurdle at 25,100. Given the likely uptick in volatility, traders should remain cautious and avoid taking aggressive bets," Rajesh Bhosale of Angel One said.

Bharat Electronics, Tech Mahindra, ONGC, Wipro and Apollo Hospital were the top gainers on the Nifty. Laggards on the index included Adani Ports, SBI, Shriram Finance, Bajaj Finserv, and Bajaj Auto.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.