Sensex dropped 823 points and Nifty under 24,900 on June 12, 2025. Explore 5 key reasons behind today’s market crash—from Middle East tensions to F&O expiry—with insights and investor tips.
📉 Today’s Market Breakdown
- Sensex: Closed at 81,691.98, down 823 points (–1%) economictimes.indiatimes.com+10business-standard.com+10economictimes.indiatimes.com+10
- Nifty: Slid to 24,888.20, a drop of 253 points (–1.01%) m.economictimes.com+4business-standard.com+4timesofindia.indiatimes.com+4
- Market Cap: Over ₹7 lakh crore wiped off outlookbusiness.com+1news.google.com+1
🔍 5 Reasons Behind Today’s Drop
1. Middle East Tensions
Geopolitical pressure surged after news of Israel planning action against Iran and U.S. embassy evacuations. These developments spooked investors worldwide—leading to risk-off sentiment in India too m.economictimes.com.
2. U.S.–China Trade Tariff Fears
President Trump’s announcement of possible universal tariffs revived fears that trade peace may unravel. Uncertainty around global trade weighed heavily on investor sentiment reuters.com+1reuters.com+1.
3. Global Market Weakness
Asia and Europe were broadly lower today, led by softness in U.S. data and Middle East fears. US tech and European markets showed cracks, dragging Indian markets along .
4. Crude Oil Volatility
Brent crude spiked on geopolitical anxiety—raising input costs for Indian companies. While oil producers like ONGC gained, aviation, tyres, and fuel marketers took a hit youtube.com+15businesstoday.in+15reuters.com+15.
5. Weekly F&O Expiry
Thursday is expiry day for Nifty futures and options. Enhanced unwinding of positions amplified the intraday drop, making volatility worse economictimes.indiatimes.com+5outlookbusiness.com+5youtube.com+5.
🧭 Investor Takeaways
- Don’t panic—market swings are normal.
- Use volatility to accumulate quality stocks.
- Track Middle East developments, oil prices, and trade news.
- Watch the F&O expiry cycle—it often spikes intraday volatility.
🔗 External References
- [Reuters: India shares fall on trade uncertainty and Middle East tensions]business-standard.com+5outlookbusiness.com+5economictimes.indiatimes.com+5outlookbusiness.com+5reuters.com+5news.google.com+5
- [ET Markets: Why Sensex crashed 823 points, Nifty below 24,900]outlookbusiness.com+7business-standard.com+7economictimes.indiatimes.com+7
❓ FAQs
Q1: Why did the Sensex fall so much today?
Large-scale selling came from global geopolitical tensions, trade concerns, oil price surges, and derivative expiries .
Q2: What sectors were hit hardest?
IT, auto, metals, aviation, and fuel-marketing stocks saw the biggest declines .
Q3: Should I buy the dip?
If you’re a long-term investor and confident about your portfolio, dips can be good entry points. But research is key.
Q4: When will markets stabilize?
Monitor global cues—like easing in Middle East hostilities, crude oil stabilization, and clarity on tariffs. Any clarity can ease volatility.
🧠 Final Word
Markets don’t fall for no reason—and today’s drop is a reminder that global events influence local portfolios. Stay informed, stay calm. Use volatility as an advantage—but keep your strategy firmly in place.
