Sensex sinks 1,337pts, Nifty below 24,500: 5 reasons why markets fell today

Why stock markets are falling today: Fearing a disruption in supply chains amid Israel's attack on Iran, oil prices jumped to five-month highs Friday morning

Why are markets down today, stock markets falling today: The stock markets in India plunged sharply on Friday, June 13, 2025, as a surprise air strike by Israel against Iran rattled investors. The BSE Sensex index plummeted 1,337.5 points in early deals to hit a low of 80.354.5. The Nifty50, on the other hand, crashed below the 24,500 level to touch a low of 24,473 as it fell 415. 

 

In the broader markets, the Nifty MidCap index and the Nifty SmallCap index 1.35 per cent and 1.55 per cent, respectively.  All the sectors were nursing losses today with the Nifty Auto, the Nifty PSU Bank, the Nifty Metal indices down 1.5 per cent each  "The economic consequences of this Israeli strike can be profound if the attack and counter attack by Iran lingers long. Israel has declared that the operation will last  several days. Brent crude prices have flared up by around 12 per cent to $78. It can risk further if Iran in retaliation closes the straight of Hormuz severely restricting oil supply. The impact on market will depend on how long the conflict lingers. In the near-term, the market will be in a risk-off mode," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.     READ LATEST STOCK MARKETS UPDATES TODAY LIVE

 

 

Why are stock markets falling today? Key reasons why Sensex, Nifty are down in India on Friday:

 

Israel air strikes against Iran:

In an unforeseen attack, Israel launched 'Operation Rising Lion' against Iran Friday morning, attacking its nuclear facilities amid escalating tensions between the two West Asian countries. 

 

A statement from Israeli Prime Minister Benjamin Netanyahu's office stated, "Moments ago, Israel launched Operation Rising Lion, a targeted military operation to roll back the Iranian threat to Israel's very survival. This operation will continue for as many days as it takes to remove this threat." READ MORE

 

Oil prices surge

Fearing a disruption in supply chains, oil prices jumped to five-month highs Friday morning. Brent crude futures soared 13 per cent today morning, before cooling off slightly to trade 9 per cent higher at $75.74 per barrel. Similarly, US WTI crude futures jumped nearly 13 per cent intraday, before trading 10 per cent higher at $74.75/barrel-mark. 

 

According to reports, Iran has likely declared an emergency and is preparing to retaliate. This, analysts said, raises the risk of not just disruptions but of contagion in other neighbouring oil producing nations as well.   Meanwhile, rising oil prices could adversly affect India's import bill, thereby impacting its fiscal deficit.

Rupee slides

Indian rupee fell significantly on Friday amid souring investor sentiment. The Indian rupee fell 54 paise, opening at 86.14 per US dollar as against Thursday's close of 85.60/$. Remember, weakness in Rupee implies lower returns for foreign investors in Dollar terms, nudging them to sell Indian equities.

 

Global markets sink

Asia-Pacific markets were deep in the red on June 13 amid simmering tensions in West Asia. Japan's benchmark Nikkei 225 declined 1.33 per cent while the Topix lost 1.26 per cent. South Korea's Kospi fell 1.17 per cent and the small-cap Kosdaq declined 2.97 per cent.

 

Further, Australia's S&P/ASX 200 lost 0.23 per cent. Hong Kong's Hang Seng index fell 0.98 per cent while mainland China's CSI 300 lost 0.78 per cent.

 

US futures, too, sank in the pre-market trading. Nasdaq Composite futures dropped 374 points, or 1.7 per cent, while S&P500 futures shed 1.6 per cent. Dow Jones futures, too, edged 1.47 per cent lower. 

 

Nifty technical levels:

The decline in stock markets today follows a sharp slide in Thursday's session, further weakening the market structure. Yesterday, the Nifty ended lower by 253 points at 24,888, while the Sensex crashed 823 points to 81,692. 

 

Technically, the market breached the crucial support level of 25,000 on the Nifty and 82,000 on the Sensex, witnessing an intensified selling pressure post the break down. On daily charts, the indices have formed a long bearish candles, which support further weakness from the current levels.

 

"We are of the view that as long as the market is trading below 24,920/81,800, a weak sentiment is likely to continue. On the downside, it could slip to 24,650/81,000. Further declines may also continue, potentially dragging the market down to 24,550/80,700. The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders," said Shrikant Chouhan, Head Equity Research, Kotak Securities.