The Indian stock market witnessed another choppy session on Thursday, June 11, with both headline indices remaining range-bound for most of the day before closing lower amid escalating tensions in the Middle East.
Weak participation from heavyweight stocks and continued selling pressure in technology counters also weighed on sentiment, causing the Nifty 50 to end 0.24% lower at 23,158. The Sensex, too, closed 0.15% lower compared with its previous close.
The broader markets mirrored the weak trend, with both the Nifty Midcap 100 and Nifty Smallcap 100 ending the session with losses of nearly 1%.
Tensions in the Middle East escalated after the US extended its attacks on Iran for a second consecutive day. The strikes came after US President Donald Trump warned that Tehran would “pay the price” for stalled negotiations, while Iran retaliated with attacks targeting Bahrain, Kuwait, and Jordan.
Iran’s foreign ministry said the latest attacks had rendered the existing ceasefire agreement “meaningless.” Traders, however, drew some reassurance from the belief that a broader escalation was not in the interest of either side.
The renewed attacks reignited concerns that a potential peace deal in the region could be pushed further away, while also reviving fears that disruptions to shipping through the Strait of Hormuz may persist for longer than previously anticipated.
