Benchmark indices Nifty and Sensex opened sharply lower on June 13, extending losses for a second straight session, as escalating tensions in the Middle East unnerved investors. A pre-dawn Israeli strike on Iran’s capital reignited fears of a broader conflict, rattling global sentiment and weighing heavily on domestic equities.

As a result, Crude oil prices surged as much as 10 percent and are up around 14 percent for the week, marking their biggest weekly gain since 2022. The spike comes amid escalating Middle East tensions, with JP Morgan warning earlier this week that oil could soar to $130 a barrel in a worst-case scenario.

At about 9:25 am, the Sensex was down 925.51 points or 1.13 percent at 80,766.47, and the Nifty was down 284.55 points or 1.14 percent at 24,603.65. About 434 shares advanced, 2308 shares declined, and 104 shares were unchanged.

"Indian markets took a hit as a combination of rising geopolitical tensions, trade uncertainty, and a tragic Air India crash weighed heavily on investor sentiment," Devarsh Vakil, Head of Prime Research at HDFC Securities, said. "The Indian rupee was the worst-performing Asian currency for the day, pressured by a surge in crude oil prices following Israel’s strike on Iran and growing global risk aversion," he added. Adding to the uncertainty, the U.S. is considering unilateral tariff hikes on several key trading partners, with a decision expected within the next one to two weeks, ahead of an early July deadline.

Sectoral indices on the NSE traded largely in the red on June 13, reflecting broad-based weakness across the market. Nifty Auto, PSU Bank, and Smallcap 100 were among the worst performers, falling 1.49 percent, 1.60 percent, and 1.53 percent, respectively. Nifty Bank, IT, Metal, and Consumer Durables also saw declines of over 1 percent each. The India VIX jumped 10.77 percent to 15.53, signalling heightened market volatility. Meanwhile, indices like Nifty Energy, FMCG, Infra, Pharma, and Realty opened flat, showing relative resilience amid the broader selloff.

Shares of listed carriers like InterGlobe Aviation (IndiGo) and SpiceJet fell up to 4 percent in early trade as investors reacted to the Air India crash that killed 241 people. The selloff in aviation stocks was also influenced by rising geopolitical tensions in the Middle East. Global sentiment turned risk-averse after Israel launched a strike on Iran’s capital, targeting facilities reportedly linked to Tehran’s nuclear and missile programs. The Israeli government said it expected retaliatory attacks in response.

Titan shares fell over a percent as JPMorgan assigned a neutral rating on the counter. The brokerage sees jewellery demand as more resilient compared to other discretionary segments and expects mid-to-high teens growth in the medium term. While demand for low-value studded jewellery is rising, high-end purchases remain muted. Margins are expected to stay steady at 11–11.5 percent despite the impact of higher duties in FY25. Potential entry into lab-grown diamonds (LGD) and overseas expansion are seen as key growth levers.

From a technical perspective, the index faced rejection near the 25,200 zone and slipped below the 9-EMA, though it continues to hold around the 20-Day SMA. This marks a pause in the ongoing uptrend, hinting at possible consolidation or mild profit booking ahead. The higher highs and higher lows remain intact on the broader time frame, but the bearish engulfing pattern raises near-term caution. The RSI has dropped from 60 to 55, indicating a decline in momentum. The Average True Range (ATR) has risen slightly, increasing intraday volatility. The immediate support remains at 24,800; a break beneath this zone could invite a sharper slide, whereas 25,100 remains a formidable ceiling on the upside.

ONGC was the sole gainer on the Nifty. Laggards on the index included L&T, Shriram Finance, Tech Mahindra, NTPC, and Bajaj Finserv.