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Markets end passing week with over 1% cut amid rising geopolitical tensions
Jun-13-2025

Indian markets closed the passing week with cut of over 1% each mainly due to selling in the last trading session of the week tracking sharp rise in crude oil prices amid heightening geopolitical tensions in the Middle East region after Israel launched a preemptive strike against Iran in a major escalation of the regional conflict. Foreign fund outflows also dented sentiments.

Some of the major developments during the week are:

Retail inflation eases to six-year low in May: India's retail inflation, as measured by the Consumer Price Index (CPI), eased to a six-year low of 2.82 per cent in the month of May 2025 mainly due to a slower increase in food prices. It is the lowest reading since February 2019.

World Bank retains India's economic growth projection at lower level for 2025-26: World Bank has retained India's economic growth projection at lower level of 6.3% for 2025-26 due to pressure on exports emanating from global uncertainties, though India will remain the fastest growing major global economy.

India's extreme poverty rate declines sharply to 5.3% in 2022-23: India's extreme poverty rate declined sharply to 5.3 per cent over a decade from 27.1 per cent in 2011-12 even as the World Bank revised upwards its threshold poverty line to $3 per day.

Commerce Minister calls Swiss industry to partner in India’s growth story: Union Minister of Commerce and Industry, Piyush Goyal has invited the Swiss business community to be active partners in India’s journey towards becoming a $30-35 trillion economy by 2047.

India will certainly cross $825 billion exports in FY26: Commerce and Industry Minister Piyush Goyal said that the world trade is facing severe geo-political challenges, but India consistently emerged as winner in such times, and its exports of goods and services will certainly cross $825 billion in 2025-26.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 1070.39 points or 1.30% to 81,118.60 during the week ended June 13, 2025. The BSE Midcap index losses 415.23 points or 0.90% to 45,681.28, while Smallcap index slipped 69.97 points or 0.13% to 53,370.29. On the sectoral front, S&P BSE Realty was down by 248.38 points or 3.08% to 7,820.91, S&P BSE Consumer Durables was down by 1,289.34 points or 2.21% to 57,110.34 and S&P BSE Fast Moving Consumer Goods was down by 408.75 points or 2.00% to 20,065.88 were the top losers, S&P BSE Information Technology was up by 1,002.48 points or 2.72% to 37,839.04, S&P BSE Healthcare was up by 772.90 points or 1.79% to 43,995.31 and S&P BSE TECK was up by 254.34 points or 1.42% to 18,194.51 were the top gainers on the BSE.

NSE movement for the week

The Nifty slipped 284.45 points or 1.14% to 24,718.60. On the National Stock Exchange (NSE), Bank Nifty was down by 1051.05 points or 1.86% to 55,527.35, Nifty Next 50 lost 1013.80 points or 1.49% to 66,979.05 and Nifty Mid Cap 100 decreased 782.85 points or 1.33% to 58,227.45, while Nifty IT was up by 1174.40 points or 3.15% to 38,469.25. 

FII transactions during the week

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week, with gross purchases of Rs 114,012.74 crore and gross sales of Rs 112,392.89 crore, leading to a net inflow of Rs 1,619.85 crore. They also stood as net sellers in the debt segment with gross purchases of Rs 12,877.81 crore against gross sales of Rs 31,465.27 crore, resulting in a net outflow of Rs 18,587.46 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 202.24 crore and gross sales of Rs 172.35 crore, leading to a net inflow of Rs 29.89 crore.

Industry and Economy

Reserve Bank of India (RBI) Governor Sanjay Malhotra has said the future monetary policy actions will be decided by the trajectory of growth and inflation. He noted that if the RBI's expectation of 6.5% real Gross Domestic Product (GDP) growth and inflation cooling to 3.7% in FY26 plays out, there is ‘little space’ for interest rate cut. He also spelled out that the aspirational growth rate for India is 7-8% per annum. He said the monetary policy will surely help accelerate the credit growth and help in the broader economic growth. Malhotra said there is a need for the transmission to get faster in the economy, underlining that the process has been better this time than in the past instances. 

Outlook for the coming week

In the passing week, markets ended with cut of over a percent as tensions escalated between Israel and Iran. Besides, there was cautiousness about U.S.-China trade deal.

On the economy front, market men will be eyeing the Wholesale Price Index (WPI) data to be announced on June 16. Monetary Policy Meeting Minutes, Bank Loan Growth, Deposit Growth, Foreign Exchange Reserves, Infrastructure Output YoY going to be out on June 20. 

On the global front, investors would be eyeing few economic data from world’s largest economy, United States (US), starting with NY Empire State Manufacturing Index on June 16 followed by Retail Sales, Export Prices, Import Prices, Redbook YoY, Industrial Production, Manufacturing Production on June 17, Fed Interest Rate Decision on June 18, Fed Press Conference, Initial Jobless Claims on June 19, Baker Hughes Oil Rig Count on June 20.

Top Gainers 

  • Tech Mahindra up by 6.16% was the top gainer on Nifty for the week - Tech Mahindra entered into multi-year partnership with Hanab to modernize their IT infrastructure. Partnership aims to streamline operations and implement next-generation technologies to support Hanab’s growth aspirations. Hanab will leverage Tech Mahindra’s extensive expertise in digital IT transformation and IT carve-outs to create secure, scalable, and future-ready IT infrastructure.
  • Oil and Natural Gas Corporation (ONGC) up by 5.78% was another top gainer on Nifty for the week - Upstream oil companies’ stocks traded higher after oil prices climbed after Israel launched a preemptive strike against Iran in a major escalation of the regional conflict. Upstream companies typically enjoy windfall gains in such environments, bolstering profitability.

Top Losers 

  • Tata Steel down by 3.70% was the top loser of the week on Nifty - Matel stocks traded lower amid geopolitical concerns in Middle East. Geopolitical tensions escalated after Israel struck Iran as tensions mounted over U.S. efforts to halt Iran’s production of atomic bomb materials. Recently, US President Donald Trump told Pennsylvania steelworkers that he would double the tariff on steel imports to 50% to protect their industry.
  • Adani Ports & Special Economic Zone (SEZ) down by 3.55% was another top loser of the week on Nifty - Adani Ports & SEZ came under pressure amid escalating geopolitical tensions between Israel and Iran. There are concerns that Adani Group’s Haifa Port in Israel could face some disruptions. The port is one of Israel’s major seaports.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 25,222.40 on June 11 and lowest level of 24,473.00 on June 13. On the last trading day, the Nifty closed at 24,718.60 with weekly loss of 284.45 points or 1.14 percent. For the coming week, 24,386.93 followed by 24,055.27 are likely to be good support levels for the Nifty, while the index may face resistance at 25,136.33 and further at 25,554.07 levels.

US Market

The U.S. markets traded higher during the week after U.S. and Chinese officials announced an agreement in principle on a framework to ease trade disputes between the two economic superpowers.

Some of the major developments during the week are:

U.S. producer prices inch up 0.1% in May: The Labor Department said its producer price index for final demand inched up by 0.1 percent after slipping by a revised 0.2 percent in April. Street had expected producer prices to rise by 0.3 percent.

Weekly jobless claims in U.S. unexpectedly unchanged at eight-month high: Initial jobless claims in at 248,000, unchanged from the previous week's revised level. Street had expected jobless claims to dip to 240,000.

U.S. consumer prices inch up slightly less than expected in May: The Labor Department said its consumer price index inched up by 0.1 percent in May after rising by 0.2 percent in April. Street had expected 0.2 percent increase.

Thirty-year bond auction attracts average demand: The results of this month's auction of $22 billion worth of thirty-year bonds, revealing sale attracted average demand. Thirty-year bond auction drew a high yield of 4.844 percent.

U.S. President says he will set unilateral tariff rates: Trump said he intended to send letters to trading partners in next one to two weeks setting unilateral tariff rates, ahead of a July 9 deadline to reimpose higher duties on dozens of economies.

European Market

European markets remained lackluster during the passing week, with lingering U.S.-China trade uncertainty and escalating tensions in the Middle East keeping investors worried.

Some of the major developments during the week are:

Italy jobless rate steady at 6.1% in Q1: The data published by the statistical office Istat showed that the seasonally adjusted jobless rate stood at 6.1 percent in the March quarter, the same as in the previous quarter. 

UK economy contracts most since 2023: The Office for National Statistics reported that real gross domestic product declined 0.3 percent month-on-month in April, following a growth of 0.2 percent in March.

Eurozone investor confidence strongest in a year: The survey data from the behavioral research institute Sentix showed that the investor sentiment index rose to +0.2 in June from -8.1 in May. 

France industrial output falls 1.4%: The figures from the statistical office INSEE showed that industrial output fell 1.4 percent monthly in April, reversing a 0.1 percent increase in March. 

Swedish GDP expands at slower pace: Gross domestic product rose 0.4 percent month-on-month in April, though slower than the 0.9 percent recovery in the prior month. 

Asian Market

Asian markets, barring Straits Times Index (STI), traded lower during passing week, amid heightening geopolitical tensions in the Middle East region after Israel launched a preemptive strike against Iran in a major escalation of the regional conflict.

Some of the major developments during the week are:

Japan's wholesale inflation eases in May: Japan’s annual wholesale inflation slowed in May on falling import costs for raw materials, easing pressure on the Bank of Japan to raise interest rates at its next policy board meeting.

South Korea unemployment rate remains stable at 2.7%: South Korea's unemployment rate remained stable at a low level in May, reflecting strong labor market conditions. The unemployment rate held steady at seasonally adjusted 2.7 percent in May.

South Korea to revamp tax scheme to boost dividends: In a bid to make the domestic stock market more attractive, South Korean President Lee Jae-myung said the government was preparing to revamp the country's tax system to boost dividend payouts.

China's exports slow in May: China’s export growth slowed in May, weighed down by fewer US orders being made before the two countries came to a 90-day tariff truce.

China consumer prices dip for 4th straight month in May: China's consumer prices edged lower in May as deflationary trends continued to drag on the economy. The consumer price index fell 0.1 percent from the same month last year.
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