Geopolitical Tensions Weigh on Indian Markets; Nifty Ends Week with Over 1% Loss
By S JHA
MUMBAI, June 13, 2025 – Indian equity markets witnessed a volatile week as escalating geopolitical tensions weighed on investor sentiment, triggering a sharp sell-off. The Nifty 50 ended the week with losses of over 1%, closing slightly above the 24,700 mark, while the Sensex also mirrored the weakness.
The week began on a positive note with Nifty attempting to breach the psychological 25,200 mark. However, the absence of sustained buying momentum led to profit booking, particularly ahead of the weekly expiry. The selling pressure intensified on Thursday night following reports of a fresh Israeli attack on Iran, which rattled global markets. Asian and European indices slipped deep into the red, spilling over into Indian markets that opened sharply lower on Friday.
Despite the gap-down opening, domestic indices showed resilience, gradually recovering throughout Friday’s session to close near the day’s high, limiting further damage. Market breadth, however, remained weak, with only 13% of Sensex stocks, 18% of Nifty stocks, and 26% of Nifty 500 stocks ending in the green.
Healthcare stocks emerged as relative outperformers, posting steady gains even as broader indices struggled. In contrast, sectors like PSU Banks, FMCG, Metals, and Energy witnessed significant drag, while Realty and IT closed the week on a flat note.
“Volatility surged sharply as India VIX climbed over 7%, reflecting heightened risk aversion among investors. Derivative data indicated cautious positioning, with put unwinding seen at 25,200–24,800 levels and aggressive call writing between 24,800–25,000,” said Angel One in a note to clients after the market hours.
From a technical standpoint, Nifty breached its short-term 20-day exponential moving average (DEMA) during the week, signalling short-term weakness, added the brokerage firm. However, the index managed to hold above key weekly moving averages, keeping hopes alive for near-term stability. “The 24,400–24,450 zone remains a crucial support area, while a move back towards 24,825 and reclaiming the 25,000 level will be critical for bulls,” added Angel One.
Stock Highlights:
- Jubilant Ingrevia Ltd surged over 16% intraday on strong volumes, confirming a breakout on both daily and weekly charts.
- Biocon Ltd advanced over 7%, breaking out on the weekly chart with strong volume support.
- The Ramco Cements Ltd climbed more than 5%, marking a multi-year breakout with its highest close since November 2021.
- Manappuram Finance hit an all-time high amid rising gold prices that are driving higher loan demand; open interest rose over 12%, signaling strong long build-up.
- DCM Shriram announced the acquisition of a 100% stake in Hindusthan Speciality Chemicals for ₹375 crore.
With geopolitical uncertainties continuing to loom and key technical levels in focus, market participants are expected to remain cautious in the near term while tracking both global cues and domestic developments.
(Disclaimer: This article makes no recommendation for any kind of trades in the stock market.)
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