West Asia Tensions Keep Investors Cautious
BIZ DESK June 24, 2025
DOMESTIC benchmark equity indices, the Sensex and Nifty 50, experienced a volatile trading session today, ultimately closing with modest gains. The market’s seesaw movement was largely attributed to ongoing uncertainties surrounding the West Asia conflict, which kept investors on edge despite early optimism fueled by reports of a potential ceasefire.
The 30-share Bombay Stock Exchange (BSE) Sensex advanced 158 points, or approximately 0.2%, to settle at 82,055. This came after the index surged to an intra-day high of 83,018, reflecting significant intraday swings. Similarly, the National Stock Exchange (NSE) Nifty 50 added 72 points, gaining nearly 0.3% to close at 25,044. The Nifty also saw substantial volatility, hitting an intra-day high of 25,318 before retreating.
Initial market sentiment was positive, driven by reports of a “complete and total” ceasefire between Israel and Iran, which initially led to a dip in crude oil prices. However, subsequent reports of ceasefire violations and the resurgence of tensions in West Asia triggered profit booking and heightened investor caution, pulling the indices back from their day’s highs. Analysts noted that the market’s sensitivity to global geopolitical developments, particularly those impacting energy markets, was clearly evident.
Top Performers and Laggards on the Sensex:
Out of the 30 companies in the Sensex pack, 16 managed to edge up. Among the prominent gainers were:
- Adani Ports: Surged almost 2.6%. The stock’s rise was also supported by hopes of easing geopolitical tensions and stable operations at its Haifa Port in Israel.
- Tata Steel: Climbed over 1.5%.
- Kotak Bank: Advanced over 1.4%.
Conversely, the top laggards included:
- PowerGrid: Shed more than 1.5%.
- Trent: Fell almost 1%.
- NTPC: Dipped over 0.9%. NTPC’s decline was also attributed to a significant block deal where approximately 0.9% of its equity changed hands.
Sectoral Performance on the BSE:
A majority of sectors on the BSE ended in positive territory, with 16 out of 21 sectors registering gains.
- Services: Surged over 2.1%, leading the sectoral gainers.
- Telecommunication and Commodities: Both gained more than 1.1% each.
- Metal: Added almost 1%.
However, some sectors experienced losses:
- Energy and Oil & Gas: Both lost almost 0.2% each, likely impacted by the volatile crude oil prices.
- IT: Dropped 0.1%.
- Tech and Focused IT: Closed nearly flat.
Broader Market Outlook:
The overall market breadth at the BSE remained positive, indicating broader participation. Shares of 2,662 companies advanced, while 1,339 declined, and 143 companies remained unchanged. On the National Stock Exchange, 44 companies reached their 52-week high, while 31 hit their 52-week low.
Market analysts anticipate continued volatility in the coming days as investors await further clarity on the situation in West Asia. The upcoming expiry of monthly futures and options (F&O) contracts also added to the market’s choppiness. Despite the fluctuations, S&P Global Ratings recently indicated that the Indian economy is expected to withstand the West Asia turmoil, citing lower global energy prices as a buffer against currency and inflation pressures, offering some long-term comfort.
