Fresh military exchange between Tehran and Tel Aviv sends shockwaves across global markets; Brent crude surges past $96

Indian equity markets opened the week on a deeply unsettling note Monday as renewed hostilities between Iran and Israel triggered a sharp sell-off across Dalal Street. The BSE Sensex nosedived nearly 900 points in early trade on June 8, while the Nifty 50 slumped 1% to 23,113 — a reflection of the anxiety gripping investors not just in Mumbai but across financial capitals worldwide.

Explosions in Iran Unsettle Markets

The trigger was unmistakable. Israel's military launched fresh attacks on Iran Monday, following a wave of Iranian missiles fired at Israeli territory. Tehran accused Israel of repeatedly violating a ceasefire agreement through its continued strikes on Lebanon. The tit-for-tat exchange shattered whatever fragile calm had held in the region and sent risk assets tumbling globally.

The timing was particularly damaging for markets already on edge. Wall Street had recorded steep losses on Friday, with the Nasdaq shedding over 4% and the Dow Jones declining 1.35%. Asian markets opened Monday in freefall — South Korea's KOSPI crashed 4.49% and Japan's Nikkei fell nearly 3.83%, with Hong Kong's Hang Seng also trading in the red.

Blue Chips Bear the Brunt

On the Sensex, heavyweights including TCS, Eternal, Mahindra & Mahindra, IndiGo, Bajaj Finance and Larsen & Toubro were among the hardest hit. The broad-based selling left few sectors unscathed. On the NSE, Nifty Realty led the losses, tumbling 1.96%, while most other sectoral indices traded in negative territory. The only bright spots were Nifty Pharma, PSU Bank and Healthcare, which managed to hold their ground amid the broader carnage.

Oil Spikes as Peace Deal Hopes Fade

Crude oil markets reacted swiftly. Brent crude surged 3.63% to $96.75 a barrel as traders priced in the risk of a wider Middle East conflict and the potential disruption to regional oil supply routes. West Texas Intermediate rose 3.35% to $93.89. The spike came against the backdrop of already fragile negotiations around a US-Iran peace deal — a process that now faces fresh uncertainty with the resumption of hostilities, despite reported appeals from US President Donald Trump urging restraint.

Rupee Under Pressure

The Indian rupee also felt the heat, dropping 17 paise to 95.35 against the US dollar in early trade — a combination of risk-off sentiment, rising oil import costs, and foreign institutional selling. Data showed foreign institutional investors (FIIs) offloaded domestic equities worth ₹8,776 crore on June 5 alone. Over the last 30 days, FII net outflows have totalled a steep ₹76,006 crore. Domestic institutional investors (DIIs) stepped in to absorb some of the pressure, buying ₹9,134 crore on the same day.

Wider Fallout Being Assessed

Market participants are now closely watching how the situation evolves over the coming hours. Any escalation could push crude further upward, adding to inflationary pressure and widening India's current account deficit. The RBI's room to manoeuvre on rates could also come under scrutiny if the rupee continues to weaken.

For now, Dalal Street is in full risk-off mode. Traders and fund managers will be watching diplomatic developments out of West Asia with as much attention as they give to domestic economic data.

Indian equity markets remained closed on Thursday on account of Bakrid, while commodity (MCX) trading will resume later in the evening, market officials confirmed. The holiday came as Asian stock indices slid sharply and crude oil prices jumped amid renewed tensions in the Middle East, denting investor sentiment ahead of the weekend.

Markets closed for Bakrid

The BSE and NSE did not operate on Thursday because of the Bakrid public holiday, a routine annual closure. Commodity exchanges, including MCX, were inactive until late afternoon; trading is scheduled to restart at 5:00 pm IST, exchange notices showed. Stock broking desks said most overseas markets were open, leaving Indian investors to track global cues remotely.

Asian markets slide

Asian equities suffered notable declines on Thursday. South Korea’s KOSPI dropped about 3.1% in early trade, while Hong Kong’s Hang Seng fell roughly 2.3% and Japan’s Nikkei eased around 1.2%, exchange feeds indicated. Market strategists linked the weakness to a sharp rise in crude oil and lingering geopolitical worries after fresh US-Iran tensions.

US markets firmed; mixed signals

Wall Street closed modestly higher on Wednesday, with the Dow Jones adding 0.36% and the Nasdaq nearly flat, data showed. But that limited uplift failed to translate into Asian gains overnight. “US markets were steady, but the spike in oil and heightened risk aversion in Asia outweighed the follow-through,” a Hong Kong-based strategist said on condition of anonymity.

FIIs net sellers

Data compiled by exchange sources showed continued foreign institutional investor (FII/FPI) outflows. Over the past 30 days, FIIs sold equities worth about ₹45,374 crore, while domestic institutional investors (DIIs) remained net buyers, purchasing roughly ₹71,654 crore over the same period. In the latest seven-day window, FIIs were net sellers to the tune of around ₹7,069 crore, compared with DII buys of ₹15,043 crore.

Domestic indices fell earlier

On Wednesday, when markets were open, the BSE Sensex closed down 142 points at 75,868 and the Nifty 50 slipped 7 points to finish at 23,907. Banking stocks underperformed, brokers said, reflecting profit-taking after a recent rally and sensitivity to macro and liquidity expectations.

Crude surge fuels concerns

A key immediate trigger was a near 4% rise in Brent crude to about $98 per barrel on Thursday, traders said, citing renewed US-Iran tensions. Higher oil directly affects inflation and input costs globally and is particularly sensitive for India, which imports an estimated 80–85% of its crude needs. “When oil spikes, the trade deficit and inflation outlook worsen, the rupee can weaken, and corporate margins—especially for fuel-intensive sectors—come under pressure,” an equity economist noted.

Why oil hits Indian markets

Analysts explained that rising crude increases import bills, pressuring the rupee and raising costs for manufacturers, transporters and airlines. That squeezes corporate profits and can erode equity valuations. Retail inflation risks could also prompt tighter monetary stance expectations, adding to investor caution.

Ground-level cues

On the trading floors and at brokerage firms in Mumbai’s Dalal Street, traders spent the holiday monitoring late-session commodity trades and global headlines. “We were more focused on oil and flows from FIIs. With markets closed, clients expect a quiet holiday but want updates before the close in the US,” said a Mumbai broker who declined to be named.

What to watch next

Market participants will watch MCX’s evening session for any volatility in energy contracts and refine positions ahead of Friday’s truncated session. The rupee’s movement versus the dollar, upcoming US economic data, and any further geopolitical developments will be key near-term drivers. Investors will also track central bank commentary and domestic macro prints that could influence DII behavior.

For now, the Bakrid holiday gave local investors a pause to reassess exposures while global factors—especially a resurgent crude oil price—kept risk sentiment subdued. If oil maintains elevated levels into next week, strategists warn, Indian markets may face renewed pressure once trading resumes fully.

Akash Ambani Appointed MD of Jio Platforms Ahead of IPO 

Reliance Industries’ digital arm Jio Platforms has elevated Akash Ambani to the role of Managing Director, a move timed closely with preparations for the company’s much-awaited initial public offering.

According to regulatory filings with the Ministry of Corporate Affairs, the appointment became effective from April 9, 2026, for a five-year term. The decision, approved by the board on the same day and subject to shareholder nod, comes as the telecom and digital services giant gears up to file draft papers with market regulator Sebi.

Leadership Boost Before Listing

Market observers view the appointment as a strategic step to present a clear leadership face to potential investors. With the IPO expected to be one of India’s largest, strengthening the top deck is seen as crucial for building confidence. Sources familiar with the matter indicated that draft red herring prospectus (DRHP) filing could happen by the end of May or in June.

Akash Ambani, the eldest son of Reliance chairman Mukesh Ambani, has been deeply involved with the Jio ecosystem for over a decade. He joined the board of Reliance Jio Infocomm Ltd (RJIL) as a non-executive director in October 2014 and was appointed its Chairman in June 2022. His expanded role at Jio Platforms, which oversees the group’s entire digital portfolio, is expected to bring sharper focus on execution as the company transitions toward public listing.

Strong Financial Performance

Jio Platforms has delivered robust numbers in the financial year 2025-26. The company reported operating revenue of around ₹1.46 lakh crore, while gross revenue touched higher levels near ₹1.72 lakh crore. Net profit for the year stood at over ₹30,000 crore, reflecting healthy growth in subscriber base, average revenue per user (ARPU), and digital services.

The performance was driven by continued expansion in 5G services, home broadband, and entertainment platforms such as JioCinema and JioSaavn. Industry analysts note that consistent profitability and scale have positioned Jio favourably for a market debut that could value the entity at tens of billions of dollars.

Jio Platforms’ Digital Ecosystem

Jio Platforms Limited serves as the holding entity for Reliance’s digital and telecom businesses. It encompasses RJIL, which operates the world’s largest mobile data network by some metrics, along with consumer apps including MyJio, JioCinema, JioSaavn, and various enterprise solutions. The platform has played a transformative role in India’s digital economy since its disruptive entry into telecom years ago.

Under Akash Ambani’s oversight, the group has increasingly emphasised new-age technologies like artificial intelligence, blockchain, and Internet of Things to expand beyond connectivity into commerce, education, and healthcare.

IPO Preparations Gain Pace

Recent reports suggest the IPO structure has evolved into a primarily fresh issue of shares for fundraising, with limited or no offer for sale by existing investors at this stage. This shift is understood to reflect confidence among stakeholders in the long-term growth story.

The listing, once completed, would mark the first major public offering by a key Reliance unit in nearly two decades and could set benchmarks for the Indian capital market.

Market Reaction and Outlook

The development has drawn positive attention in business circles, with many seeing it as a natural leadership transition aligned with the group’s succession plans. While official comments from the company remain limited, the timing underscores the seriousness with which the Ambanis are approaching the public listing.

As Jio Platforms moves closer to the DRHP filing, attention will turn to valuation expectations, regulatory clearances, and market conditions. For millions of Indian investors and the broader digital economy, the listing of Jio represents not just a corporate milestone but a significant chapter in the country’s technology and telecom journey.

Analysts will closely watch how the company articulates its growth strategy under the new leadership structure in the coming weeks. With strong fundamentals and an ambitious roadmap, Jio Platforms appears poised to make a notable entry into the public markets.

Markets plunge on Budget Day as Indian equities witnessed their worst Budget Day performance in six years on Sunday, February 1, following key announcements in the Union Budget 2026. The BSE Sensex crashed 1,546 points to close at 80,722, while the Nifty50 slipped sharply by 495 points to end at 24,825. The sharp sell-off was largely triggered by a steep increase in Securities Transaction Tax (STT) on futures and options trading.

STT Hike Triggers Sharp Market Reaction

One of the biggest shocks for traders came from the government’s decision to raise STT on derivatives:

 STT on futures increased from 0.02% to 0.05%

 STT on options premium raised from 0.10% to 0.15%

 STT on options exercise increased to 0.15%

Market experts believe this move immediately raised trading costs, hitting sentiment in the highly active F&O segment. Brokerage and exchange-related stocks fell as much as 10% during the session.

CA Arun Mantri said, “The budget is largely positive, but the STT hike in F&O is the only negative. Short-term reactions are expected due to higher trading costs.”

Sensex Stocks, Sectors Deep in the Red

The sell-off was broad-based. Out of the 30 Sensex stocks, 26 ended in the red, with only four managing gains.

 BEL, SBI, and NTPC declined up to 4%

 Public sector banks were the worst hit, falling nearly 4%

 All sectoral Nifty indices, including IT, FMCG, metals, pharma, media, realty, and financial services, closed lower

This widespread decline highlights how sensitive markets remain to policy changes impacting liquidity and trading activity.

Budget Highlights Fail to Calm Markets

Despite the market fall, the Union Budget 2026 included several long-term growth-focused announcements:

 Capital expenditure raised to ₹12.2 lakh crore for FY27

 Government aims to reduce debt to 50% of GDP by 2030-31

 Continued focus on infrastructure, urban development, and Tier-2 and Tier-3 cities

However, investors chose to focus on the immediate impact of higher taxes rather than long-term benefits.

Foreign Flows and Global Cues Add Pressure

Foreign Institutional Investors (FIIs) sold shares worth ₹601 crore, while Domestic Institutional Investors (DIIs) provided some support with purchases worth ₹2,251 crore. Mixed global cues from Asian and US markets also failed to lift sentiment.

What Should Investors Do Now?

Market experts advise investors to stay calm and focus on quality large-cap stocks. Budget-linked sectors like infrastructure, defence, and railways may offer long-term opportunities, while volatility could persist in the short term.

Markets plunge on Budget Day as higher STT in derivatives overshadowed otherwise growth-oriented budget announcements. While the short-term reaction has been harsh, experts believe long-term investors should look beyond the volatility and focus on fundamentals as policy clarity improves in the coming weeks.

Dalal Street witnessed a wave of optimism on Friday, January 16, 2026, as the Indian markets rebounded sharply following a mid-week slump. The rally was fueled by a dual catalyst: positive geopolitical signals from U.S. President Donald Trump regarding peace efforts in the Middle East and a blockbuster earnings report from IT bellwether Infosys.

In early trade, the Sensex jumped more than 400 points, reclaiming the 83,600 level, while the Nifty 50 rose steadily to trade near 25,780. This recovery comes as a relief to investors after the markets remained closed on Thursday for the Maharashtra municipal elections.

Trump’s ‘Board of Peace’ Calms Geopolitical Tensions

The primary driver for the global "risk-on" sentiment was a series of posts by President Trump on his social media platform, Truth Social. Trump announced the establishment of "THE BOARD OF PEACE," a move aimed at accelerating the next phase of the Gaza Peace Plan.

Key highlights from the announcement include:

• The Board of Peace: Chaired by Trump himself, the board aims to oversee a transition to a technocratic Palestinian government in Gaza.

• Iran De-escalation: Trump cited reports that planned executions of Iranian protesters had been halted, signaling a slight softening of tensions that had previously pushed oil prices to 2-month highs.

• Regional Stability: The push for "comprehensive demilitarization" in Gaza has led investors to hope for a stabilized Middle East, reducing the "war premium" on global commodities.

Crude Oil Prices Ease as Supply Fears Recede

The cooling of tensions directly impacted the energy markets. Crude oil prices, which had touched $65 per barrel earlier in the week, eased to approximately $63.60 on Friday morning. For a major oil importer like India, falling crude prices are a significant macro-economic tailwind, helping to curb inflation and improve the trade deficit.

Tech Giants Lead the Charge

Domestically, the rally was spearheaded by the IT sector. Infosys shares surged nearly 5% after the company raised its revenue growth guidance for FY26 to 3-3.5%. This better-than-expected performance from the country's second-largest IT firm triggered a broad-based rally in Tech Mahindra, HCL Tech, and Wipro.

Out of the 30 Sensex stocks, 16 were trading in the green during early hours. Banking and Auto sectors also saw healthy buying, while Pharma and Metal shares faced minor profit-booking.

Institutional Play: DIIs vs. FIIs

Despite the morning surge, the tug-of-war between institutional investors continues. On January 14, Foreign Institutional Investors (FIIs) offloaded shares worth ₹4,781 crore. However, Domestic Institutional Investors (DIIs) remained the market's backbone, purchasing equities worth ₹5,217 crore to offset the foreign outflows.

Conclusion: A Cautiously Optimistic Outlook

The Indian markets are currently navigating a complex landscape of cooling oil prices and shifting global alliances. While the "Trump effect" has provided a temporary boost, the long-term trajectory will depend on the actual implementation of the Gaza peace plan and the sustainability of the IT sector's recovery.

Commodity-Based Mutual Funds Steal the Spotlight in 2025

As 2025 draws to a close, commodity-based mutual funds have emerged as the surprise winners in India’s investment landscape. While benchmark indices like the Sensex and Nifty posted modest year-to-date gains of around 9%, commodity-linked investment products—especially those focused on precious metals—delivered significantly higher returns, outperforming many equity mutual funds.

A one-year performance review of mutual fund schemes across asset classes shows that gold and silver-focused funds dominated return charts, reflecting strong investor interest in safe-haven assets amid global uncertainty.

Silver ETFs and FoFs Lead Performance Charts

Among the standout performers in 2025 were silver-focused Exchange Traded Funds (ETFs) and Fund of Funds (FoFs). Schemes such as:

Aditya Birla Sun Life Silver ETF FoF

ICICI Prudential Silver ETF FoF

Nippon India Silver ETF FoF

reported returns exceeding 130% over the past year, driven by a sharp rally in silver prices in both domestic and global markets.

Navy Vijay Ramavat, Managing Director at Indira Securities, said precious metals clearly dominated mutual fund performance this year. He noted that overseas funds investing in global gold mining companies also benefitted from the sustained uptrend in bullion prices.

“The strong rise in gold and silver supported commodity-based mutual funds across markets,” Ramavat said, adding that multi-asset and hybrid funds with commodity exposure also gained from balanced allocation strategies.

Experts Warn Against Chasing Short-Term Commodity Rallies

Despite the stellar performance, market experts advise caution. Commodities are cyclical by nature and prone to sharp corrections after steep rallies.

According to Ramavat, investors should focus on:

Long-term asset allocation

Individual risk appetite

Investment time horizon

Portfolio diversification

rather than making decisions based purely on recent returns.

Equity Mutual Funds Show Selective Strength

Equity mutual funds were not entirely left behind in 2025. Sectoral funds, especially those focused on banking and financial services (BFSI), delivered strong returns.

Manish Talwar, Founder of Goalstox, highlighted that schemes like Quant BFSI, DSP BFSI, and SBI BFSI generated over 20% annual returns, supported by the resilience of large banks and financial stocks.

He added that large-cap and flexi-cap equity mutual funds outperformed mid- and small-cap peers, as investors preferred stability amid market volatility. Hybrid and balanced funds also offered better risk-adjusted returns.

Why Commodity-Based Mutual Funds Matter Now

Vishranth Suresh, CEO and Co-founder of AssetPlus, said 2025 reinforced the importance of disciplined investing across cycles. While gold and silver delivered exceptional one-year gains, he emphasized that timing and allocation remain critical due to commodity volatility.

“Commodities offer opportunity but demand caution,” Suresh said.

Overall, 2025 highlighted the growing relevance of commodity-based mutual funds, ETFs, and FoFs as strategic portfolio components. Their strong performance, especially in gold and silver, underscored the value of diversification during uncertain market conditions—reminding investors that balance, not just returns, is key to long-term wealth creation.