Why Market Is Down Today: Indian equity markets witnessed a sharp downturn on Thursday, June 12, 2025, as the BSE Sensex nosedived by 992 points intraday, plunging to 81,523. The index fell 1,138 points from its session high, reflecting widespread sell-off across sectors. The NSE Nifty50 also breached the crucial 25,000-mark, dipping to an intraday low of 24,826 — down 315 points from the previous close and 371 points from the day’s peak.
Market analysts attribute this sharp correction to a combination of technical, geopolitical, and macroeconomic factors.
Nifty Weekly F&O Expiry Weighs on Sentiment
June 12 marked the weekly expiry of the Nifty’s derivative contracts, contributing significantly to the volatility. According to Anand James, Chief Market Strategist at Geojit Financial Services, the index lacked upward momentum over the past few sessions. “A direct fall below the 24,900-24,863 range confirms bearish pressure,” he said.
Options data further supported a cautious outlook. While aggressive put writing was visible near current market levels, call writers built fresh positions at higher strike prices. The 25,500 strike has become a major resistance zone with over 1.25 crore contracts, while significant put additions at the 25,000 mark have made it a short-term support level.
“The Put-Call Ratio (PCR) fell from 0.93 to 0.86, pointing to an uptick in bearish bets,” said Dhupesh Dhameja, Derivatives Analyst at SAMCO Securities. He added that the max pain level currently stands at 25,100, indicating that the market may consolidate near this point as expiry settles.
Geopolitical Jitters Fuel Risk Aversion
Tensions between the U.S. and Iran flared again after President Donald Trump ordered the evacuation of American personnel from parts of the Middle East, citing heightened security threats. Talks over the U.S.-Iran nuclear deal have reportedly stalled, with Israeli strikes on Iranian nuclear infrastructure looming as a potential flashpoint.
This growing instability in the Gulf has triggered a surge in global crude prices. Brent crude futures jumped 4.3% on Wednesday, closing at $69.77 per barrel, while WTI crude surged nearly 5% to $68.15. Though Brent prices dipped slightly to $68.93 on Thursday, they remain near a 10-week high, stoking fears of inflation and a fiscal burden for oil-importing nations like India.
Global Markets Mirror Weakness
European stocks opened lower, tracking the weak cues from Asia and geopolitical worries. Germany’s DAX fell 1.3%, France’s CAC 40 dropped 0.8%, and Europe’s STOXX 600 was down by a similar margin. Meanwhile, U.S. futures also slipped — with Nasdaq 100 and S&P 500 futures falling by over half a percent, and Dow Jones futures sliding by 244 points.
Trump’s Trade Tariff Deadline Nears
Markets were further rattled by fresh comments from President Trump regarding the July 9 deadline for implementing reciprocal tariffs. Indicating a tougher stance, Trump said his administration would begin issuing final trade deal proposals, warning that it’s “take it or leave it” time for trading partners.
This looming deadline has added a layer of uncertainty to the global trade landscape, already shaken by elevated inflation and rate-cut speculations from major central banks.
Bloodbath on D-Street
As of the time of this report, 43 of the 50 Nifty stocks were in the red. Major losers included Tata Motors, Tata Steel, Shriram Finance, L&T, Coal India, Titan Company, PowerGrid, Nestle India, Tata Consumer, Jio Financial, M&M, HUL, and SBI Life — with most stocks declining between 1.5% and 3%.
The Nifty MidCap index tumbled 1.52%, and the SmallCap index dropped 1.76%, indicating broader market weakness.
All sectoral indices ended in negative territory. The Nifty Realty index was the worst hit, losing 2%, followed by Nifty Auto (down 1.7%) and Nifty Metal (down 1.6%). The Nifty Bank index also shed 0.76%.
A mix of domestic technical triggers, rising oil prices, global geopolitical tension, and weak overseas cues dragged Indian equities lower. With crucial tariff deadlines and further geopolitical developments on the horizon, markets may remain volatile in the coming sessions. Investors are advised to tread cautiously and track global indicators closely.
