Markets Stumble as Geopolitics Rattle Nerves: Indices End the Week in Red

Indian Developments

The markets experienced heightened volatility during the week ending June 13, 2025, ultimately closing on a weaker note. The decline was primarily driven by escalating geopolitical tensions between Iran and Iraq, which pushed crude oil prices higher, along with subdued global cues and a net FII outflow of approximately ?3,831 crore from Indian equities.

Despite the slight pullback earlier this week, DII net buys of approx. 9393.8 Crore, helping cushion the impact of sell-off.

The rupee depreciated and stood at 86.09 levels against US dollar driven by high crude oil prices, geopolitical tensions.

The Nifty 50 ended the week at 24,718 marking a decline of 1.14%, while Nifty Midcap 150 and Nifty Small cap 250 weakened by at 1.18% (21,433) and 0.44% (17,210) respectively during the period.

Sectoral Developments

For the week ending June 13, 2025, majorly all the indices ended lower than previous week due to combination of geopolitical tensions, FII sell offs, surge in oil prices and weak global cues.

Nifty Capital markets led the decline with a drop of 4.28%, followed by loss in Nifty Realty ( 3.13%), Nifty FMCG (2.29%), Nifty PSU Bank ( 2.33%), Nifty Consumer durables (2.05%), and Nifty Financial Services (1.91%).

On the other end of the spectrum, Nifty IT and Nifty pharma upsurged by 3.15% and 1.39% respectively.

Global Developments

Global equities posted a mixed performance this week, with U.S. indices leading the charge driven by easing of tariff tensions, positive inflation data and tech sector performances.

While Asian markets broadly declined, emerging markets showed mixed performance

U.S. equities posted modest gains over the week, with the S&P 500 rising 0.38%, while both the Dow Jones Industrial Average and the Nasdaq 100 edged up by 0.24% each compared to the previous week.

In Europe, markets showed mixed sentiment. The FTSE 100 slipped by 0.24%, and Germany’s DAX declined more sharply by 1.09%, reflecting geopolitical and economic uncertainties.

Asian markets led the downside, with Hong Kong’s Hang Seng falling 0.85%, Shanghai Composite dropping 0.75%, and South Korea’s KOSPI retreating by 0.875%, as regional tensions and global risk aversion weighed on sentiment.

Other Markets:

• Brent crude prices surged sharply over the week, closing at $74.73 per barrel, marking a significant rise from the previous week’s levels.
• The rupee was depreciated to 86.09 levels against the US dollar.
• The 10 Year Benchmark G-Sec yield closed at 6.34% this week.

Source: www.nseindices.com; google finance, MCX Gold Prices; www.rbi.org.in; Morningstar and tradingeconomics.com, ccilindia.com, Economic times

Data for week ended on June 13th , 2025.

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