The Indian stock market ended Thursday, June 12, 2025, with sharp losses. Traders navigated through a highly volatile session influenced by multiple factors, including the weekly expiry of Nifty50 futures and options contracts, escalating tensions between the US and Iran, rising crude oil prices, and concerns around the approaching deadline for former US President Donald Trump’s trade negotiations. All these elements combined to create an atmosphere of uncertainty, which triggered heavy selling across sectors.
Indices Post Sharp Declines
The BSE Sensex and NSE Nifty50 witnessed sharp falls throughout the session. The Sensex started under pressure and extended its losses as the session progressed. After touching an intraday low of 81,523.16, the Sensex recovered slightly but still closed sharply lower at 81,691.98. The index lost 823.16 points or 1 percent by the closing bell.
The Nifty50 mirrored the Sensex’s trend. Sellers dominated the broader index right from the start. After struggling throughout the day, Nifty50 breached the crucial 25,000 level. It closed at 24,888.2, down by 253.2 points or 1.01 percent. Weak global cues, coupled with domestic uncertainties, continued to weigh on investor sentiment.
Broader Markets Under Heavy Pressure
Selling pressure extended beyond the large-cap indices. The broader markets also suffered steep declines. The Nifty Midcap100 index lost 1.73 percent, while the Nifty Smallcap100 index dropped 1.90 percent. Traders avoided riskier midcap and smallcap stocks due to heightened volatility.
Institutional investors, both domestic and foreign, preferred to reduce exposure in midcap and smallcap segments. Weak global market sentiment, along with elevated valuations in select pockets, drove the sharp corrections across the broader market.
Sectoral Indices Trade in Deep Red
All sectoral indices ended in negative territory. No sector escaped the broad-based sell-off.
The Nifty Realty index stood out as the worst performer, losing 2.02 percent. Stocks in the real estate sector faced aggressive selling due to concerns over rising interest rates and global geopolitical tensions. Stocks such as Phoenix, Godrej Properties, Anant Raj, DLF, Prestige, Sobha, Brigade, and Macrotech Developers declined up to 3 percent during the session.
Energy stocks also suffered losses. The Nifty Energy index fell over 1 percent due to the impact of rising oil prices. With crude oil prices climbing amidst US-Iran tensions, market participants turned cautious on energy companies’ margins.
The Nifty Consumer Durables, Oil & Gas, Auto, PSU Bank, FMCG, Metal, and Financial Services indices also witnessed significant declines, each shedding more than 1 percent. Concerns about rising input costs, weakening demand outlook, and global risk-off sentiment contributed to widespread selling across sectors.
Heavy Selling Hits Sensex Constituents
The majority of Sensex constituents closed with losses. Out of the 30 stocks in the Sensex, 27 ended lower.
Tata Motors, Titan, Eternal, Power Grid, Tata Steel, L&T, and Mahindra & Mahindra led the decline. Each of these stocks registered losses of more than 2 percent. Investors trimmed positions in auto, capital goods, and metal stocks on fears of global trade disruptions, rising input costs, and oil price spikes.
Tata Motors declined as investors feared margin pressure due to rising commodity prices and currency headwinds. Titan and Eternal faced profit-booking after recent gains. Power Grid and Tata Steel weakened on concerns about rising operational costs and softening global demand for steel.
L&T and Mahindra & Mahindra saw heavy selling as traders grew cautious on capital goods and automobile demand. L&T’s stock dropped after brokerage downgrades citing margin pressures ahead. Mahindra & Mahindra fell following weakness in rural demand and concerns around rising interest rates affecting auto sales.
Few Gainers Offer Limited Relief
Only three Sensex stocks closed higher — Bajaj Finserv, Asian Paints, and Tech Mahindra. Bajaj Finserv attracted some buying interest due to relative strength in financial services despite overall weakness. Asian Paints gained on the back of falling raw material prices and expectations of improved profit margins. Tech Mahindra showed resilience as investors favored select IT stocks ahead of the US Federal Reserve meeting next week.
Global Cues Stay Weak
Global market sentiment remained fragile throughout the day. Investors monitored rising tensions between the United States and Iran closely. The possibility of fresh sanctions and potential military escalation triggered caution across global equity markets.
Rising oil prices added to inflationary concerns worldwide. Brent crude prices climbed above $86 per barrel, reflecting worries about potential supply disruptions. Higher oil prices raised fears of renewed inflationary pressures, which could force central banks to delay interest rate cuts.
US markets showed mixed signals overnight. Asian peers traded mostly in the red during the morning hours, reflecting nervousness ahead of key economic data releases and geopolitical developments.
F&O Expiry Intensifies Volatility
The weekly expiry of Nifty50 futures and options contracts contributed to heightened volatility in the domestic market. Traders adjusted their positions aggressively ahead of the expiry deadline. Large unwinding of long positions led to additional downward pressure on indices.
Derivative positions witnessed significant rollovers into the next series, indicating traders’ cautious outlook for the near term. Elevated option premiums signaled nervousness among market participants about the immediate market direction.
India VIX Rises as Fear Returns
The volatility index, India VIX, climbed by 2.54 percent to settle at 14.01 points. Rising volatility reflected growing nervousness among market participants. Traders increased hedging activity amid fears of further corrections.
Higher volatility levels often signal elevated uncertainty in the short term. Traders and investors prepared for more choppy sessions as macroeconomic and geopolitical uncertainties continue to dominate market discussions.
Foreign Institutional Investors Turn Net Sellers
Foreign institutional investors (FIIs) reduced their exposure to Indian equities during the session. Rising global risks and currency fluctuations prompted FIIs to book profits. The rupee showed weakness against the dollar, further driving foreign investors to pull out funds.
Domestic institutional investors (DIIs) absorbed some of the selling but could not offset the selling pressure entirely. Mutual funds and insurance companies remained selective in their purchases, focusing on quality stocks with strong fundamentals.
Technical Outlook for Markets
Technical analysts observed that the Nifty50 breached important support levels during the session. The index closed below the psychological 25,000 mark, signaling weakness. Immediate support now rests near 24,750 levels, while resistance zones remain near 25,200.
The Sensex faces its next support near 81,300, while resistance remains around 82,400. Momentum indicators suggest that the market may stay under pressure in the near term unless it receives positive triggers from global markets or corporate earnings.
Market experts advised traders to remain cautious and avoid aggressive buying until stability returns. Defensive sectors like IT, select pharma, and consumer staples may offer relative safety during volatile periods.
Outlook for the Coming Sessions
The market outlook for the next few sessions depends on several critical factors. Investors will watch for any developments in US-Iran relations. Oil price movements will remain a key concern as rising prices could hurt corporate earnings and economic recovery.
The approaching deadline for Trump’s trade deal negotiations adds another layer of uncertainty. Global markets may react sharply to any announcements or breakdowns in these talks.
Domestically, inflation data, rupee movement, and corporate earnings will influence sentiment. The monsoon season’s progress will also play a role in shaping investor confidence in consumption and rural demand sectors.
Market participants should stay alert for any policy statements from the US Federal Reserve. A hawkish stance could dampen global equity sentiment further.
Conclusion
Indian stock markets closed sharply lower on June 12, 2025, ending a highly volatile session dominated by weak global cues, geopolitical tensions, rising oil prices, and the Nifty50 F&O expiry. All sectoral indices posted losses, with Realty, Energy, Auto, and Financial Services facing the brunt of the selling pressure. Broader markets saw steeper corrections as midcaps and smallcaps witnessed heavy unwinding.
Traders and investors face a cautious outlook in the coming sessions as multiple global and domestic factors continue to weigh on market sentiment. Volatility may persist, requiring careful stock selection and risk management.
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