Market ends lower on geopolitical jitters and FOMC caution

Domestic equity benchmarks slipped into the red on Tuesday, dragged down by rising tensions between Israel and Iran. Investor sentiment remained subdued ahead of the U.S. Federal Reserve's policy decision.

A spike in crude oil prices and persistent FII outflows further dampened mood on Dalal Street. The Nifty closed below the 24,900 mark.

IT stocks were the lone bright spot, buoyed by a stronger U.S. dollar. All other sectoral indices on the NSE ended lower, with pharma, healthcare, and metal stocks taking the biggest hit.

The S&P BSE Sensex declined 212.85 points or 0.26% to 81,583.30. The Nifty 50 index fell 93.10 points or 0.37% to 24,853.40.

Adani Enterprises (down 2.32%), Bajaj Finance (down 1.58%) and Reliance Industries (down 0.50%) were major drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.56% and the S&P BSE Small-Cap index fell 0.67%.

The market breadth was weak. On the BSE, 1497 shares rose and 2482 shares fell. A total of 139 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 2.93% to 14.40.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.11% to 6.264 from the previous close of 6.270.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 86.2450 compared with its close of 86.0450 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.04% to Rs 99,222.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 98.20.

The United States 10-year bond yield shed 0.61% to 4.432.

In the commodities market, Brent crude for August 2025 settlement rose $1.15 or 1.57% to $74.38 a barrel.

Global Markets:

US Dow Jones futures were down 271 points, signaling a weak start for Wall Street.

European stocks declined on Tuesday as investors assessed the Israel-Iran conflict, following U.S. President Donald Trump's call for everyone to immediately evacuate Tehran. The president subsequently left the Group of Seven summit a day early due to the Middle East crisis.

Asian shares ended mixed as investors kept a close watch on the simmering Israel-Iran tensions.

Japan's central bank said it would slow the pace of government bond purchases from April next year while it also held its benchmark rate at 0.5% as growth risks loom.

Back in the US, Wall Street closed in the green overnight. Hopes for a de-escalation in the Middle East boosted sentiment, with the Dow Jones climbing 0.75%, the S&P 500 gaining 0.94%, and the Nasdaq leading the rally with a 1.52% jump.

On the corporate front, Roku shares popped after the company unveiled a new exclusive partnership with Amazon Ads. The deal is set to create the largest authenticated Connected TV (CTV) footprint in the US, a major win in the growing streaming ad market.

Meanwhile, the US Federal Reserve begins its two-day meeting today. While interest rates are widely expected to remain unchanged at around 4.5%, the spotlight will be on any hints of a pivot to rate cuts, especially as inflation cools and growth shows signs of fatigue.

Across the border, G7 leaders are gathering in Canada this week. The mood might be tense, with US President Donald Trump's tariffs on allied imports casting a shadow. Canadian PM Mark Carney has promised a push for peace and stability but hinted at potential retaliatory tariffs if Washington doesn't ease up on its steel and aluminum duties.

Stocks in Spotlight:

The Nifty Pharma index dropped 1.89% to 21,622.80 after US President Donald Trump warned that pharma tariffs are coming very soon. This spooked investors, given that many Indian pharmaceutical companies earn a significant chunk of their revenue from US exports.

Granules India (down 3.81%), Lupin (down 3.6%), Natco Pharma (down 3.42%), Laurus Labs (down 3.12%), Aurobindo Pharma (down 3.09%), Ajanta Pharma (down 2.47%), Divi's Laboratories (down 2.36%), Zydus Lifesciences (down 2.09%), Dr. Reddy's Laboratories (down 2%), Sun Pharmaceutical Industries (down 1.91%), Nifty Pharma Index (down 1.89%), Glenmark Pharmaceuticals (down 1.81%), Gland Pharma (down 1.62%), Cipla (down 1.51%), Biocon (down 1.44%), Alkem Laboratories (down 1.29%), JB Chemicals & Pharmaceuticals (down 0.93%), Mankind Pharma (down 0.76%), Torrent Pharmaceuticals (down 0.6%), Ipca Laboratories (down 0.37%) tumbled.

Godrej Properties rose 1.27% after the company announced that it has acquired an approximately 16-acre land parcel in Upper Kharadi, Pune. The project will have a developable potential of 2.5 million square feet with an estimated revenue potential of about Rs 3,100 crore.

Tata Consultancy Services (TCS) added 0.57%. The company has announced a strategic partnership with the Council of Europe Development Bank (CEB) to modernize the bank's operations and enhance efficiency through advanced automation.

Ethos declined 2.14%. The company announced that it has acquired 100% equity in its newly incorporated subsidiary, Ficus Trading LLC, as part of its strategic expansion into international markets, particularly the Middle East.

NTPC added 0.48%. The company announced that its board is scheduled to meet on Saturday, 21 June 2025, to consider a proposal for raising funds up to Rs 18,000 crore through the issuance of bonds.

Rane (Madras) surged 11.60% after the company's board approved the sale of a significant land parcel in Tamil Nadu. The board has given the approval to sell approximately 3.48 acres out of a total 4.5-acre plot located in Velachery, Chennai, to Canopy Living LLP'a joint venture between real estate players Arihant Foundations & Housing and Prestige Estates Projects.

AXISCADES Technologies hit an upper circuit of 5% after the company announced a strategic alliance with Indra, a European defense and aerospace major, to jointly manufacture and develop cutting-edge systems in India.

Vipul Organics hit an upper circuit of 5% after the company announced that it has received the final approval and the first commercial order for a newly developed organic intermediate intended for use in the automobile industry.

Macrotech Developers declined 1.41%. The firm said it has officially changed its name to Lodha Developers, effective 16 June 2025, following approval from the Ministry of Corporate Affairs (MCA).

Brahmaputra Infrastructure rallied 3.66% after the company received two separate orders totalling to Rs 24.33 crore from National Highway Authority of India and Water Resources Department (WRD) in Assam.

IPO update:

The initial public offer (IPO) of Oswal Pumps received bids for 55,75,66,824 shares as against 1,62,12,980 shares on offer, according to stock exchange data at 16:45 IST on Tuesday (17 June 2025). The issue was subscribed 34.39 times.

The issue opened for bidding on Friday (13 June 2025) and it will close on Tuesday (17 June 2025). The price band of the IPO is fixed between Rs 584 and 614 per share. An investor can bid for a minimum of 24 equity shares and in multiples thereof.

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