Market Update: Sensex and Nifty Dip Amid Middle East Tensions and Fed Rate Speculations

On Wednesday, the Sensex and Nifty indices closed lower as investor sentiment was affected by rising tensions in the Middle East and caution ahead of the US Federal Reserve's interest rate decision. The Sensex fell by 138.64 points, while the Nifty decreased by 41.35 points. Despite some gains in the auto and consumer discretionary sectors, the overall market struggled to maintain early gains. This article provides a detailed overview of the market's performance and the factors influencing investor behavior.

By Narendra Chaudhary Jun 18, 2025, 16:40 IST

Market Overview

Mumbai: The benchmark indices, Sensex and Nifty, experienced a decline on Wednesday, primarily due to escalating tensions in the Middle East and investor caution ahead of the US Federal Reserve's interest rate announcement.

After initially gaining, the 30-share BSE Sensex fell by 138.64 points, or 0.17%, closing at 81,444.66. The index reached a high of 81,858.97 during morning trading but could not sustain those gains, eventually dropping to a low of 81,237.01, a decrease of 346.29 points or 0.42%.

Similarly, the 50-share NSE Nifty decreased by 41.35 points, or 0.17%, finishing at 24,812.05, marking its second consecutive day of losses.

Among the companies listed on the Sensex, Tata Consultancy Services, Adani Ports, Hindustan Unilever, Nestle, Bajaj Finserv, and NTPC were among the biggest losers.

In contrast, IndusInd Bank, Titan, Mahindra & Mahindra, and Maruti emerged as the top gainers.

Vinod Nair, Head of Research at Geojit Investments Limited, noted, "The domestic market could not hold onto its early gains as ongoing tensions in the Middle East and fluctuations in oil prices negatively impacted overall sentiment. However, the auto and consumer discretionary sectors showed gains amid hopes for a demand revival."

Israeli airstrikes targeted Iran's capital overnight, coinciding with Iran's missile launch towards Israel, although no casualties have been reported.

According to exchange data, Foreign Institutional Investors (FIIs) purchased equities worth Rs 1,482.77 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought equities worth Rs 8,207.19 crore in the previous session.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225, and Shanghai's SSE Composite index closed positively, while Hong Kong's Hang Seng index ended lower.

European markets were also trading positively.

On Tuesday, US markets closed lower.

The global oil benchmark, Brent crude, fell by 1.35% to USD 75.42 per barrel.

Previously, the Sensex had dropped by 212.85 points, or 0.26%, settling at 81,583.30, while the Nifty decreased by 93.10 points, or 0.37%, to 24,853.40.