Sensex, Nifty 50 Start In Red After Trump’s Call For Evacuating Tehran, Broader Indices Outperform

The domestic stock market started the trade on Tuesday, June 17 on a sombre note as US President Donald Trump’s fresh remarks regarding the ongoing Israel-Iran war stocked fears of a wider geopolitical conflict in the Middle East. At 9:25 AM, the Sensex traded lower by 222 points, or 0.27 per cent, at 81,574.14. Likewise, the Nifty 50 cracked 84.4 points, or 0.34 per cent, to trade at 24,862.10.

Earlier today, Trump called for a full evacuation of Tehran and abruptly cut short his G7 summit visit in Canada. In a separate development, Trump had instructed the national security council to remain prepared in the situation room. As fears of further escalation in the Middle East grew, investors adopted a cautious stance.

On the sectoral front, gains were limited with Nifty Realty, Nifty PSU Bank, Nifty Media, and Nifty IT emerging as the only indices trading in the green. On the other hand, selling pressure was visible across most sectors, led by Nifty Pharma and Nifty Healthcare, which declined nearly 1 per cent each. Other laggards included Nifty Auto, Nifty Metal, Nifty Financial Services, Nifty FMCG, Nifty Oil & Gas, Nifty Consumer Durables, and Nifty Private Bank, all trading in the red.

Broader Market Indices Outperform

The broader market indices, however, were largely trading in the green. The Nifty Midcap 100 and Nifty Smallcap 100 traded higher in the range 0.25 per cent to 0.40 per cent, while the Nifty 500, which accounts for approximately 92.29 per cent of the NSE's free-float market capitalisation, remained largely flat, fluctuating within a narrow range. Meanwhile, the Nifty Microcap 250, which comprises of the top 250 companies outside the Nifty 500, outperformed with a 0.4 per cent gain.

Sensex, Nifty 50: Top Gainers And Losers

From the Sensex, Sun Pharma, Tata Motors, IndusInd Bank, Titan, UltraTech Cement, and Bajaj Finance were the top losers, while Asian Paints, Adani Ports, NTPC, State Bank of India, Kotak Mahindra Bank, and HCL Technologies kept the losses in check.

Among the Nifty 50 stocks, Sun Pharma, ONGC, Tata Motors, IndusInd Bank, Titan, Bajaj Finance, and UltraTech Cement were the top drags. On the other hand, Asian paints, Adani Ports, Bharat Electronics, State Bank of India, NTPC and Kotak Mahindra Bank advanced the most.

US Stock Market Ends Higher, Futures Fall

The US stock markets closed higher on Monday, June 16 after President Donald Trump hinted at the possibility of a truce between Israel and Iran. The prospect of easing tensions between the two warring nations pushed crude oil prices lower, easing concerns over potential inflationary pressures stemming from a spike in energy costs.

The Dow Jones Industrial Average climbed 317.30 points, or 0.75 per cent, to finish at 42,515.09. The S&P 500 advanced 56.14 points, or 0.94 per cent, to 6,033.11, while the tech-heavy Nasdaq Composite jumped 294.39 points, or 1.52 per cent, to close at 19,701.21.

However, later on Tuesday, June 17 US stock futures slipped as crude oil prices rebounded after investors were rattled by Trump’s call to evacuate Tehran, stoking fears of a greater geopolitical instability.

The September 2025 Futures contract of all the three benchmark indices were trading lower in the range 0.3 per cent to 0.5 per cent, at the time of filing this report.

All eyes are now on US Federal Reserve, which is set to announce its decision on rate cuts today. The Fed is largely expected to keep the interest rates unchanged at 4.25-4.50 per cent range. However, investors will also be watching for signs of possible rate cuts in the near future.

Asian Markets Trade Mixed

In Asia, markets traded mixed in early trade today. The Hong Kong-based Hang Seng was trading about 0.35 per cent lower, while Japan's Nikkei 225 was up by 0.5 per cent.

South Korea's KOSPI traded about 0.43 per cent higher after surging nearly 1.5 per cent higher early in today's trade. China's SSE Composite, on the other hand, was down by 0.22 per cent.

The Bank of Japan kept its short-term interest rate unchanged at 0.5 per cent on June 17, as widely expected. It also maintained its current bond tapering plan, which aims to reduce monthly government bond purchases to around 3 trillion Yen by March 2026. However, the central bank introduced a new phase of quantitative tightening, announcing that from fiscal 2026, it will slow the pace further, targeting monthly purchases of about 2 trillion Yen by March 2027.