On June 12, 2025, Indian benchmark indices declined as market sentiment weakened due to ambiguity around the U.S.-China trade deal and escalating tensions in the Middle East. Major sectors, including IT, witnessed losses, while Paytm shares fell sharply following the Indian finance ministry’s stance on UPI-related fees.
India’s benchmark indices Nifty 50 and BSE Sensex opened in the red, reflecting weak investor sentiment driven by uncertainty over the U.S.-China trade framework and rising geopolitical tensions in the Middle East.
The Nifty 50 dropped by 0.16% to 25,101.3, while the BSE Sensex slid 0.2% to 82,355.26. Broader indices, including small-caps and mid-caps, also recorded declines of around 0.3%. Eleven of the thirteen major sectoral indices ended in the red, with IT stocks leading the losses, falling nearly 1%.
The volatility followed comments from U.S. President Donald Trump, who announced a tariff framework aimed at reviving the strained U.S.-China trade truce. However, the absence of specific details left investors uncertain. “The tariff crisis is not over yet,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “Given Trump’s history, it’s premature to view this as a positive development.”
Meanwhile, geopolitical concerns escalated after Iran threatened to target U.S. military bases in the Middle East if nuclear negotiations fail. Analysts warned that further conflict could elevate Brent crude prices, posing inflationary risks for oil-importing nations like India.
Among individual stocks, Paytm (One97 Communications Ltd) plunged 8.4% after India’s Ministry of Finance denied reports about the introduction of a merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions. According to a note from UBS, the absence of MDR is a negative for Paytm’s profitability outlook in FY26 and FY27.
Indian IT companies, which earn a significant portion of their revenue from the U.S., were also impacted by the uncertain trade climate and falling Wall Street indices.
As the global market remains on edge, Indian equities may continue to experience turbulence driven by international developments and oil price fluctuations.
