Stock markets close lower in volatile trade as escalating US-Iran tensions, FII outflow dent sentiment

Indian stock markets closed lower on June 11 as investors reacted to escalating tensions between the US and Iran, combined with sustained foreign fund outflows and rising US inflation. The BSE Sensex dropped 150.63 points (0.20%) to 73,832.55, while the NSE Nifty fell 53.35 points (0.23%) to 23,161.60, marking its second consecutive decline. Analysts noted that unabated FII outflows—Rs 2,124.98 crore on June 10—and a 4.2% US inflation spike (a three-year high) dampened sentiment, with crude oil prices nearing $95 per barrel. Among Sensex constituents, Infosys, HCL Tech, and Adani Ports led losses, while Mahindra & Mahindra and ICICI Bank outperformed. Sector-wise, IT stocks fell 1.78%, while healthcare and private banks saw gains. The BSE MidCap Select index declined 1.08%, and SmallCap Select dropped 0.20%. Intraday volatility was high, with Sensex swinging 875.59 points before closing lower. Global markets mirrored India’s caution: South Korea’s Kospi and Japan’s Nikkei rose marginally, but Hong Kong’s Hang Seng and Shanghai’s SSE Composite fell. US markets also ended lower, reinforcing concerns over prolonged high interest rates. Analysts warned that tighter financial conditions could delay rate cuts, pressuring equities further. The rupee’s weakness and persistent FII outflows compounded domestic market pressures. Brent crude traded at $92.16 per barrel, reflecting geopolitical risks. Overall, investor sentiment remained fragile amid dual threats of Middle East escalation and US inflation persistence.