Sensex fell 1,300+ points, Nifty dropped 1.7%, market value lost ₹7 lakh crore in one trading day amid heavy selling.

Market Snapshot

• Sensex opened at 80,427.81 and fell over 1,300 points to touch an intraday low of 80,354.59, marking a 1.6% drop.
  
• Nifty 50 fell 1.7% to an intraday low of 24,473 from its previous close of 24,888.20.
  
• Midcap and Smallcap indices also corrected up to 1.5%.
  
• By 10 AM, the Sensex had recovered slightly but was still down 907 points (1.11%), while Nifty had lost 269 points (1.08%).
  
• Total market capitalisation of BSE-listed firms dropped from ₹449.6 lakh crore to ₹442.5 lakh crore.

Why Did the Indian Stock Market Crash Today?

Here are five main reasons causing this big drop:

1. Israel-Iran Conflict Shocks Global Sentiment

The most immediate and significant trigger was the Israeli airstrikes on Iranian military and nuclear targets, including the Natanz nuclear facility. Israeli Prime Minister Benjamin Netanyahu stated the operation will continue “for as many days as necessary,” raising fears of prolonged instability in the Middle East.

This escalation comes amid an already tense global environment, with the Russia-Ukraine war still unresolved. Geopolitical risks have re-emerged as a top concern for investors, fueling a broad selloff across Asian markets including Japan’s Nikkei and South Korea’s Kospi.

2. Geopolitical Tensions Cause Oil Prices to Soar and Shares to Slide

Shares of oil marketing companies (OMCs) fell by as much as 6% on Friday because Brent crude oil prices jumped $6 to $75.36 per barrel, hitting their highest in months. This happened after Israel launched an airstrike on Iran, increasing tensions in the Middle East. People are worried this conflict could disrupt the global oil supply, especially through important shipping routes like the Strait of Hormuz.

3. Flight to Safe-Haven Assets

Investors worldwide moved away from equities and shifted to traditional safe-haven assets such as:

• Gold (up 2% in domestic futures)
  
• US Dollar (gained 0.3%)
  
• US Bonds (increased in price, causing yields to drop)

This classic risk-off sentiment further hurt emerging market equities, including India.

4. Rupee Weakens Sharply Against Dollar

The Indian rupee breached the 86 mark, opening at 86.14 per US dollar compared to 85.60 a day earlier a drop of 54 paise.

A weak rupee increases:

• The cost of imports, especially crude oil
  
• Risks of foreign capital outflows
  
• Inflationary pressures
  
  All of which negatively impact Indian corporates and investor confidence.

5. Lingering Global Trade and Tariff Uncertainty

Although the US and China have announced a trade agreement, investors remain cautious. Markets had anticipated a comprehensive trade deal, but the outcome appears limited in scope.

This unresolved uncertainty, along with concerns about US tariff policies under President Trump, continues to weigh on global market sentiment and adds to investor anxiety.

Conclusion

June 13, 2025, has turned out to be a turbulent day for Indian investors. With ₹7 lakh crore wiped out in market value, the selloff reflects the market’s vulnerability to global shocks especially geopolitical ones.

While the Israel-Iran conflict is the immediate trigger, underlying worries about inflation, crude oil, currency weakness, and global trade policies are adding fuel to the fire. Investors are advised to remain cautious, diversify their portfolios, and closely monitor geopolitical developments.

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