Markets extend losses for 3rd session amid geopolitical conflict

Mumbai: Benchmark indices Sensex and Nifty ended lower for the third straight session on Thursday, in line with weak trends in global markets, as geopolitical uncertainties due to the ongoing Iran-Israel conflict unnerved investors. The US Fed's decision to keep interest rates unchanged and rising global crude prices also dampened market sentiment, experts said. In a largely volatile trade, the 30-share BSE Sensex declined 82.79 points, or 0.10 per cent, to settle at 81,361.87. During the day, it hit a high of 81,583.94 and a low of 81,191.04, gyrating 392.9 points. As many as 3,018 stocks declined, while 959 advanced and 140 remained unchanged on the BSE. The 50-share NSE Nifty dipped 18.80 points or 0.08 per cent to 24,793.25.
'The Indian equity index experienced range-bound movement with a negative bias as cautious sentiment spread across the globe, driven by concerns over the potential US involvement in the Middle East conflict. 'Investor mood was further affected by the Fed's decision to keep interest rates unchanged while signalling persistent inflation and slower economic growth, which weighed on software export stocks,' Vinod Nair, Head of Research, Geojit Investments Limited, said. From the Sensex firms, Adani Ports, Bajaj Finance, Tech Mahindra, IndusInd Bank, Nestle and Tata Steel were among the major laggards.

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The Print

42 minutes ago

• The Print

Govt meets stakeholders to assess impact of Iran-Israel conflict on trade; monitoring situation

The participants informed that the situation in the Strait of Hormuz is currently stable and a ship reporting system is in place to monitor any incidents. New Delhi, Jun 20 (PTI) The commerce ministry on Friday held consultations with key stakeholders, including shipping lines, exporters, container firms, and other departments, to assess the impact of the Iran-Israel conflict on India's overseas trade, an official said. The freight and insurance rates are also being closely monitored, the official said. The commerce secretary emphasised the need to assess the evolving situation and its impact on Indian trade, the official said. He highlighted the importance of exploring all possible alternatives in response to the situation. Exporters have stated that the war, if escalated further, would impact world trade and push both air and sea freight rates. They have expressed apprehensions that the conflict may impact the movement of merchant ships from the Strait of Hormuz and the Red Sea. Nearly two-thirds of India's crude oil and half of its LNG imports pass through the Strait of Hormuz, which Iran has now threatened to close. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs. According to think tank GTRI, any closure or military disruption in the Strait of Hormuz would sharply increase oil prices, shipping costs, and insurance premiums, triggering inflation, pressuring the rupee, and complicating India's fiscal management. The present conflict that began with an attack on Israel on October 7, 2023 had brought cargo movement through Red Sea routes to a halt due to attacks by Houthi rebels on commercial shipping. Last year, the situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants. Around 80 per cent of India's merchandise trade with Europe passes through the Red Sea, and substantial trade with the US also takes this route. Both these geographies account for 34 per cent of the country's total exports. The Red Sea Strait is vital for 30 per cent of global container traffic and 12 per cent of world trade. India's exports to Israel have fallen sharply to USD 2.1 billion in 2024-25 from USD 4.5 billion in 2023-24. Imports from Israel came down to USD 1.6 billion in the last fiscal from USD 2.0 billion in 2023-24. Similarly, exports to Iran, amounting to USD 1.4 billion, which were at the same level in 2024-25 as well as in 2023-24, could also suffer. India's imports from Iran were at USD 441 million in FY25 as against USD 625 million in the previous year. The conflict adds to the pressure that the world trade was under after the US President Donald Trump announced high tariffs. Based on the tariff war impact, the World Trade Organisation (WTO) has already said that global trade will contract 0.2 per cent in 2025 as against the earlier projection of 2.7 per cent expansion. India's overall exports had grown 6 per cent on year to USD 825 billion in 2024-25. PTI RR HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

The Print

42 minutes ago

• The Print

Gold declines Rs 600 to Rs 99,960/10 g; silver plunges Rs 2,000/kg

Gold of 99.5 per cent purity dipped Rs 550 to Rs 99,250 per 10 grams (inclusive of all taxes). The yellow metal had closed at Rs 99,800 per 10 grams on Thursday. The precious metal of 99.9 per cent purity had settled at Rs 1,00,560 per 10 grams in the previous market session. New Delhi, Jun 20 (PTI) Gold prices slipped below the Rs 1 lakh-mark, falling Rs 600 to Rs 99,960 per 10 grams in the national capital on Friday due to selling by jewellers and stockists in line with weak global cues, according to the All India Sarafa Association. Silver prices also diminished Rs 2,000 to Rs 1,05,200 per kilogram (inclusive of all taxes) on Friday. It had ended at Rs 1,07,200 per kg on Thursday. 'Silver slid from recent highs, nearing one-week lows and heading for their first weekly decline in three weeks. It fell below USD 35.70 per ounce after a sharp rally earlier in the week. 'The decline came as investors liquidated positions in bullion to cover losses elsewhere amid rising geopolitical tensions between Israel and Iran,' Rahul Kalantri, Vice-President, Commodities at Mehta Equities, said. The Bank of England on Thursday also held rates steady in its monetary policy meetings, which also limited gains of precious metals. However, intensifying conflict between Israel and Iran, and weakness in the rupee is also supporting prices of gold and silver in the domestic markets, Kalantri said. On the global market, spot gold was trading at USD 3,353.67, lower by USD 16.72 per ounce, or 0.5 per cent. Spot silver fell 0.77 per cent to USD 36.10 per ounce in the overseas markets. 'Traders will watch developments on US trade tariffs and Middle East military engagement will drive volatility. Any signs of de-escalation or non-involvement from the US in the Iran-Israel conflict could keep gold under pressure. 'On the other side, renewed tensions will continue to support prices,' Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said. PTI HG HG TRB BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

New Indian Express

44 minutes ago

• New Indian Express

India's basmati export takes another hit after Trump tariffs as Israel-Iran war intensifies

CHANDIGARH: Already grappling with US President Donald Trump's 26 per cent tariff, the ongoing Israel-Iran war has triggered a fresh crisis in the Indian basmati rice export market. Indian basmati exporters find themselves caught in a web of woes, with stuck consignments, delayed payments, plummeting prices, and fears of a domestic glut. Iran is the second-highest importer of Indian basmati after Saudi Arabia, with the sela (parboiled) variety particularly cherished in Iranian kitchens. In the 2023–24 fiscal year, a total of 59.42 lakh metric tonnes (LMT) of basmati rice was exported from the country. Of these exports, basmati rice was mainly sent to five countries: 7 LMT to Iran, 11 LMT to Saudi Arabia, 8 LMT to Iraq, 3 LMT to Yemen, and 3 LMT to the US, with the remainder going to other countries. This development is likely to severely affect Punjab, the highest producer of basmati rice in the country, accounting for 40 per cent of production, followed by Haryana and other states.