After opening the day lower, the benchmark indices continued their downward momentum, ended the session in the red.

Indian equity markets indices ended the week's first trading session on a lower note as investors digested the United States' bombing of three nuclear facilities in Iran, siding with Israel in the West Asia war.

At the closing bell, the BSE Sensex closed lower by 511 points (0.6% lower).

Meanwhile, the NSE Nifty closed 140 points lower (down 0.5%).

Trent, Bharat Elec, and Bajaj Finance are among the top gainers today

HCL Tech, Infosys, and M&M, on the other hand, were among the top losers today.

The GIFT Nifty was trading at  24,976, lower by 153 points at the time of writing.

The BSE MidCap index ended 0.2% higher, and the BSE SmallCap index ended 0.6% higher.

Sectoral indices were trading mixed today, with stocks in the metal sector and the services sector witnessing buying. Meanwhile, stocks in the media sector and the IT sector witnessed selling pressure.

The rupee is trading at Rs 86.6 against the US$.

Gold prices for the latest contract on MCX are trading 0.2% higher at Rs 99,277 per 10 grams.

Meanwhile, silver prices were trading 0.5% higher at Rs 106,854 per 1 kg.

Here are four reasons why Indian share markets are falling

#1 US Strikes on Iran Escalate Israel-Iran Conflict

Renewed tension between the US and Iran have shaken the markets, dashing hopes of a quick resolution to the conflict. The US launched surprise airstrikes on three Iranian nuclear facilities, escalating the situation.

#2Threat to Strait of Hormuz Sparks Supply Fears

Iran may close the Strait of Hormuz, a key route for global oil supplies. About 20% of the world's oil passes through it daily. If closed, it would disrupt oil supplies, drive up prices, and impact countries like India, leading to higher inflation and market volatility.

#3 IT Stocks Slide After Accenture Sell-Off

The Nifty IT Index fell over 1% due to declines in major tech stocks like Infosys, HCL Tech, TCS and OFSS. This drop followed Accenture's 7% stock plunge in the US markets, despite the company's better than expected Q3 results. Investors were concerned about declining margins and a weak outlook, especially with a slowdown in US federal contracts.

#4 Rising Oil Prices May Delay Fed Rate Cuts

Concerns about inflation caused due to rising crude oil prices could postpone US interest rate cuts. Markets now anticipate a rate cut in September rather than July, despite one Fed governor favouring a rate cut soon.

Foreign investment in nations like India may suffer if rate cuts are postponed because of inflation and international tensions.
 

Bharat Forge Wins Major Army Contract

Moving on to the news from defence sector, according to a June 23 announcement from the Defence Research and Development Organisation, Bharat Forge has been selected as the lower bidder (L1) in an Army procurement tender for its close-quarter battle carbine (CQB), which is produced by subsidiary Kalyani Strategic Systems.

Following the news, Bharat Forge's shares have risen by more than 1% in a weak market.

Although the order's exact size is unknown, some news reports have estimated it to be close to Rs 20 bn, which could make it the biggest single order for automobiles since the INSAS files were published more than 20 years ago. More than four lakhs of these carbines are expected to be purchased by the Indian Army as part of the tender.

The new carbine deal will help Bharat Forge's subsidiary, Kalyani Strategic Systems (KSS), become a trusted defence manufacturing partner of India. KSS mainly earned revenue from exports last year.

Bhart Forge expects its order book to grow 15-20% in FY26, driven by domestic and export opportunities.

The company has a Rs 95 bn defence order book and secured Rs 69.6 bn in new business in FY25, with Rs 50 bn from defence.

Defence Shares Surge After US-Iran Tensions

In news from the defence sector, shares of defence sector rose sharply on 23 June 2025, after the US struck Iran's nuclear sites, boosting hopes for increased defence orders due to the escalating Middle East conflict.

Zen technologies and Paras defence leading the gains, jumping up to 5% to Rs 1,995 and Rs 1,718. Other top gainers include BEL, Garden Reach Shipbuilders each rising over 2%. Meanwhile, Idea foredge shares hit the upper circuit, rising 10% to Rs 631.1.

US President Trump announced that the US military struck three Iranian nuclear sites and totally obliterated Iran's key nuclear enrichments facilities.

Defence stocks are surging due to increased geopolitical tensions and expectations of higher government defence spending.

Although tension between India-Pakistan have eased somewhat, ongoing conflict like the Russia-Ukraine war and recent escalation between Isarel and Iran are keeping defence stocks in focus.

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