Key highlights
Sensex slips over 200 points, Nifty falls below 24,900 as auto and metal stocks lead decline.
Investor caution rises after Trump’s Tehran evacuation warning; crude prices climb, weighing on financial and oil sectors.
Indian equities closed lower on Tuesday, June 17, as ongoing tensions between Iran and Israel kept investor sentiment fragile. For the fifth day in a row, the two nations exchanged attacks, reinforcing market risk-off sentiment.
The Nifty 50 dropped 104 points, or 0.42%, to close at 25,842, while the Sensex fell 212 points, or 0.26%, to 81,583 points. The pharmaceutical sector, as well as metal and media stocks, led the decline.
The indices remained in a tight range throughout the day, indicating that investors are also anticipating key developments this week, such as the US Federal Reserve's policy decision, which is scheduled to be announced on Wednesday.
The central bank is widely expected to keep interest rates unchanged, and markets anticipate no reduction in July. Meanwhile, little progress in trade negotiations between the United States and its trading partners, combined with President Trump's announcement that pharmaceutical tariffs will be implemented soon, has weighed on market sentiment.
US retail sales figures are due today, and weekly jobless claims will be released tomorrow, providing additional insight into the health of the US economy. While stocks continue to fall, gold is seeing an increase in demand, with prices rising to $3,390 per ounce on Tuesday as investors shift their focus to safe haven bets amid escalating Middle East conflict.
Also Read: War Ripple Effect: 3 Major Challenges India May Face from Iran-Israel Conflict
Meanwhile, five days after its surprise attack on Iran's military and nuclear program, Israel appeared to be expanding its air campaign on Tehran, while US President Donald Trump issued an ominous message warning residents to evacuate, according to the Associated Press.
"IRAN CANNOT HAVE A NUCLEAR WEAPON," Trump wrote Monday night, before returning to Washington early from a Group of Seven summit in Canada. "Everyone should immediately evacuate Tehran!" he stated.
Trump later denied reports that he had rushed back to Washington to work on a cease-fire, claiming that his early departure had nothing to do with it."Much bigger than that," he said, without going into detail.
