17 Jun , 2025 By : Debdeep Gupta
Sensex, Nifty declined as investors booked profits following the previous session’s sharp gains and remained cautious ahead of Fed outcome this week.
The benchmark equity indices declined on Tuesday as investors booked profits following the previous session’s sharp gains amid heightened caution triggered by the ongoing conflict between Israel and Iran.
The Sensex fell 419.15 points or 0.51 percent to an intraday low of 81,471.89, while the broader Nifty slipped 136 points or 0.54 percent to a low of 24,846.45.
Key factors behind market decline:
1) Israel-Iran tensions: Israel and Iran conflict continued for the fifth consecutive day. US President Donald Trump also urged civilians to evacuate Tehran, citing Iran’s rejection of a nuclear weapons agreement. TOI report also indicated the possibility of US involvement in support of Israel, raising concerns over escalation in the region. "Geopolitical concerns, particularly comments from President Trump regarding Tehran, are adding pressure to the markets," said Devarsh Vakil, Head of Prime Research, HDFC Securities.
2) Weak global cues: Asian markets, including South Korea’s Kospi, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng, were trading in the red. US stock futures also indicated a weak opening.
3) Rise in crude oil prices: Brent crude, the global oil benchmark, rose 0.53 percent to USD 73.62 per barrel. Market sentiment remained cautious amid reports of the US military repositioning assets in Europe and President Trump cutting short his G7 summit visit. Higher crude prices are seen as negative for oil-importing countries like India.
4) FII activity: Foreign Institutional Investors (FIIs) sold equities worth Rs 2,539.42 crore on Monday.
5) Fed outcome: Investors also turned cautious ahead of the US Federal Reserve’s interest rate decision. "Investors remain cautious amid global uncertainty and are awaiting signals from the upcoming US Fed policy announcement," added Hardik Matalia, Analyst, Choice Broking.
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