Indian equities closed deep in the red on Monday, 23 June 2025, with both benchmarks snapping a three-day winning streak. The Nifty 50 ended at 23,824.10, down 278.80 points or 1.16%, while the Sensex settled at 76,200.68, lower by 893.39 points or 1.16%.
The selloff accelerated in the afternoon session. Nifty opened flat at 24,071.30, touched a high of 24,135.50, but slid to an intraday low of 23,784.95. Sensex mirrored the move, starting at 77,086.05, peaking at 77,194.83, and bottoming out at 76,082.51.
The trigger: a sharp escalation in the Middle East after the US struck three Iranian nuclear sites over the weekend. Risk-off sentiment swept through global markets, and India was no exception.
IT, Auto, FMCG Take the Hit; Broader Market Holds Up
Selling was broad but not uniform. IT stocks bore the brunt after Accenture’s weak outlook reignited fears of a slowdown in global tech spending. Infosys, TCS, HCL Tech, and Tech Mahindra all closed over 1% lower.
Auto and FMCG names also underperformed. On the flip side, metals, capital goods, and select PSU banks saw buying interest. Bharat Electronics, Trent, and Bajaj Finance bucked the trend to finish in the green.
The resilience of mid and smallcaps stood out. Nifty Midcap 100 rose 0.36% and Smallcap 100 gained 0.70%, showing domestic money was still active despite the headline selloff.
Volatility spiked, with India VIX climbing 2.74% to 14.05. The rupee slipped 23 paise to 86.78 per dollar, its weakest close in five months.
Oil Risk Back in Focus
Brent crude stayed above $78/barrel as traders priced in the risk to the Strait of Hormuz, through which nearly 20% of global oil and LNG flows.
Petroleum Minister Hardeep Singh Puri said India has been monitoring the situation for two weeks and has diversified supplies so that less oil now moves through Hormuz. He added that OMCs have inventory for several weeks and continue to receive shipments from multiple routes.
Still, any prolonged disruption would raise shipping costs and inflation risks, especially for a net oil importer like India.
Corporate & Policy Moves Keep the News Flow Alive
Away from the market noise, business headlines were busy:
– India-US trade talks: A USTR delegation is in Delhi for final talks on the first tranche of a bilateral trade deal before the 9 July deadline. Goods trade, customs facilitation, and economic security are on the table.
– ONGC reported major progress in controlling a gas blowout at its Assam field.
– HAL won the bid for ISRO’s Small Satellite Launch Vehicle tech transfer, beating an Adani-backed consortium.
– TCS opened new auto engineering hubs in Germany and Romania to serve global OEMs.
– Delhivery & Bajaj Auto rolled out 200 electric carts for last-mile delivery in smaller cities.
– Grasim invested ₹2,880 crore in Aditya Birla Capital via a preferential allotment.
Geopolitical Heat Hits Hiring Sentiment
The conflict is already influencing corporate hiring plans. A survey by Genius Consultants found 63% of firms have frozen hiring or downsized teams, while 15% are shifting to contract and freelance roles.
36% of employees said salary hikes and bonuses are under pressure. Meanwhile, 55% are upskilling to stay competitive. India also extended its airspace ban on Pakistan airlines till 24 July and continued evacuating citizens from Iran, with over 1,400 brought home so far.
What’s Driving the Next Move
Analysts say two factors will dictate the near-term trend: crude prices and the monsoon. Geojit’s VK Vijayakumar noted that lower oil and hopes of de-escalation support growth, but a 42% monsoon deficit so far is a risk for rural demand and FMCG.
Global cues matter too. Markets are waiting for Fed commentary ahead of the 28-29 July meeting, with US 10-year yields holding near 4.5%.
Bottom line: Unless crude cools and rains pick up, expect choppy trade. A positive outcome on the India-US trade deal could provide the next leg up.
