On Friday, June 13, 2025, the Indian equity landscape witnessed a dramatic upheaval. The twin giants—Sensex tumbled a staggering ~1,300 points (~1.6%), while Nifty plunged roughly 1.7%, breaching the 24,500 mark. In a single session, market capitalisation evaporated by nearly ₹7 lakh crore
1. Geopolitical Flashpoint: Israel-Iran Escalation
In the pre-dawn hours, Israel launched airstrikes targeting Iranian nuclear facilities—triggering a terror-fueled shockwave across global markets. The outbreak of hostilities stoked alarm over oil supply and intensified risk aversion among investors worldwide.
2. Oil's Meteoric Surge
Crude spiked nearly 9–12%, with Brent crude peaking above $75–78/barrel. The sudden surge—fuelled by fears of supply chain disruption via the Strait of Hormuz—hit oil-dependent sectors like OMCs (IOC, BPCL, HPCL), aviation, and industrials, squeezing margins and investor sentiment.
3. Global “Risk-Off” Frenzy
Asia ex-Japan, Europe, and U.S. markets alike slid as investors fled to havens—gold soared past ₹100,000/10 gms, the Swiss franc strengthened, and bitcoin tumbled ~3%. In India, the volatility index (India VIX) spiked over 10%, signaling panic.
4. Sectoral Bloodbath & Volatility
All 13 sectoral indices closed red; mid-caps and small-caps fell ~1.2–1.5%
IT stocks cratered following F&O expiry jitters, while aviation and OMCs suffered double-digit stock losses.
5. Compounding Domestic Headwinds
Beyond geopolitics and oil, domestic triggers worsened the crash:
-
IT shares tanked amid fresh tariff ambiguity and trade tensions .
-
The weekly Futures & Options expiry added short-term volatility.
& Plus—A Sobering Aviation Tragedy
Just hours earlier, an Air India Boeing 787 crashed in Ahmedabad, claiming ~242 lives—the worst Indian civil aviation disaster in a decade. That horrific incident deepened market gloom, hitting airline stocks hard (InterGlobe Aviation, SpiceJet down ~4%)
