Global markets are reeling from renewed fears of a full-scale conflict in the Middle East after Israel launched airstrikes on Iran in the early hours of 13 June, targeting military sites and nuclear facilities, including areas near the capital Tehran.
While the extent of damage remains unclear and no senior Iranian figures are confirmed dead, the absence of an immediate Iranian response has only heightened market uncertainty.
Israel’s top ministers and military officials were swiftly moved to secure locations following the attack. US President Donald Trump denied any involvement in the operation.
Crude oil prices soared nearly 10%, with Brent breaching $76 a barrel before settling slightly lower. This surge in energy costs has triggered widespread nervousness, especially in Asia, where equity indices slid sharply. Japan’s Nikkei dropped over 1.5%, and Chinese markets also opened weaker.
In India, markets are expected to open lower following this geopolitical shock. The GIFT Nifty, which closed at 24,997.50 overnight, slid to 24,670 in early trade before regaining some ground.
Analysts suggest the Nifty could see a volatile session with potential support at 24,825 and 24,740, while 25,100 and 25,200 may act as resistance levels. The benchmark Nifty on 12 June closed 253.20 points (1.01%) down at 24,888.20, while Sensex fell 823.16 points (1.00%) to 81,691.98. Bank Nifty lost 377.20 points to finish at 56,082.55. The broader indices also took a beating, with the Midcap 100 dropping 1.6% and Smallcap 100 falling nearly 1.8%.
Out of 4,000-odd stocks on the BSE, only 1,226 ended in the green while 2,780 closed lower. On the NSE, 782 stocks advanced, but 2,111 declined. Foreign Institutional Investors offloaded shares worth ₹3,831.42 crore, while domestic funds bought equities worth ₹9,393.85 crore.
The geopolitical unease overshadowed all domestic cues, including the Air India crash and comments from President Trump indicating he would impose unilateral tariffs on all countries within two weeks, regardless of whether trade negotiations are concluded.
The statement dampened market sentiment across the board, especially in oil & gas, consumer durables, auto, realty, metals, and FMCG sectors. Only healthcare and pharmaceuticals showed marginal movements.
In commodities, gold rallied sharply on safe-haven buying. Spot prices touched $3,435 before easing slightly to $3,430 per ounce, still well above the previous close of $3,386.12. In Kerala, gold price surged ₹640 per sovereign to reach ₹72,800. Silver also remained strong, with prices hovering around $36.28 per ounce.
Other base metals mostly traded lower, except copper, which gained 0.50% to $9,778.65 per tonne. Aluminium slipped 0.33%, while nickel, zinc, and tin saw declines. Lead, on the other hand, edged higher.
The rubber market was down 2.14%, trading at 160 cents per kg, while cocoa rose 2.30% to $9,800.86 per tonne. Coffee fell 0.96%, whereas tea gained 0.88%.
Currency markets also reflected heightened caution. The US dollar index declined further to 97.92, with the euro rising to 1.16 and the pound trading at 1.367. The yen strengthened to 142.89 per dollar. However, following the Israeli strikes, the dollar staged a mild rebound in early Friday trading.
The rupee weakened by nine paise on 12 June to close at ₹85.60 against the dollar. Meanwhile, China’s yuan held steady at 7.19 per dollar.
On Wall Street, stocks ended higher on Thursday, supported by upbeat earnings from Oracle, which posted better-than-expected results. Its shares jumped 13.3%, lifting broader indices. However, Boeing stock tumbled 5% following the Air India crash.
The Dow gained 101.85 points (0.24%) to close at 42,967.62, the S&P 100 rose 23.02 points (0.38%) to 6,045.26, and the Nasdaq Composite added 46.61 points (0.24%) to finish at 19,662.48. Despite the gains, US futures slid in early Friday trade — the Dow by 1.50%, S&P by 1.62%, and Nasdaq by 1.71%.
