Stock Market Hits Lowest Point in 2025 So Far as Global Tensions Mount

India’s equity markets saw their steepest fall of the year on June 7, 2025, amid mounting global economic uncertainty, escalating tariff tensions, and heavy foreign investor selling. The Nifty 50 dropped to its lowest level in 2025, sending shockwaves through investor sentiment.

Nifty 50 Falls to 2025’s Lowest Level

The Nifty 50 index opened at 21,758.40 on June 7, touched a daytime low of 21,743.65, and closed at 22,161.60—marking a fall of 742.85 points or 3.24% from the previous close on June 4.
This intraday low of 21,743.65 is the lowest the index has touched in 2025 so far. In contrast, the index had hit a high of 24,226.70 on January 2, 2025.

Heavy Foreign Outflows Continue

Foreign Institutional Investors (FIIs) have pulled over ₹9,000 crore ($1.04 billion) from Indian equities in recent sessions, marking their second-largest selloff this year. The largest was in late February when they offloaded over ₹12,000 crore.
The aggressive selling pushed Indian benchmark indices to their lowest levels in 10 months.

Market Reaction to Tariff Tensions

The selloff followed a sharp 5% gap-down opening on the Nifty, which reflected the severity of global concerns. While the index clawed back some of the lost ground by the end of the trading session, the overall market mood remained grim.

Escalating tariff tensions between the US and China spurred a widespread selloff across Asian and US markets. Investors exited risk assets in favour of safer options, fearing the start of a global recession.

FII Behaviour and Macro Headwinds

After returning as net buyers in March, FIIs have resumed their selling streak. In April, they sold ₹14,000 crore worth of Indian equities. This followed a 6-month selling spree that had paused briefly in March.

Rupee Records Sharp Decline

The Indian rupee posted its sharpest one-day fall in nearly three months on Monday, closing at 85.83 against the dollar. This was the steepest drop since January 13, intensifying the pressure on foreign investors to pull back from rupee-denominated assets.

Conclusion

The Indian stock market has been caught in the crossfire of rising global uncertainty and foreign capital flight. As Nifty touched its lowest level for the year, investor confidence remains fragile amid concerns of a global slowdown, a strengthening dollar, and geopolitical frictions. While markets may stabilise in the short term, the broader outlook hinges on macroeconomic clarity and the resolution of global trade tensions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.