Nifty trades below 24,750 on May 13, 2025, as FMCG shares decline for the third straight session. Global tensions and oil prices weigh on investor sentiment.
📉 Nifty Trades Below 24,750; FMCG Sector Drops for Third Straight Day
Mumbai, May 13, 2025 — Indian equity benchmarks fell sharply in early afternoon trade as geopolitical tensions rattled investor confidence. The Nifty 50 slipped below the 24,750 mark, weighed down by continued weakness in FMCG stocks and a surge in crude oil prices after Israel’s strikes on Iranian strategic sites triggered a state of emergency.
At 12:25 IST, the S&P BSE Sensex dropped 567.79 points (0.69%) to 81,118.36, while the Nifty 50 fell 178.70 points (0.72%) to 24,710.80.
🌍 Global Tensions Rattle Domestic Markets
The market downturn came amid a wave of risk aversion triggered by Israel’s military action and the subsequent declaration of a national emergency.
Global investors moved away from equities toward safe-haven assets like gold, with MCX Gold futures for August 2025 rising 1.57% to ₹99,949.
Additionally, Brent crude oil for August delivery surged 6.06% to $73.56/barrel, raising concerns about imported inflation in oil-dependent economies like India.
📊 Key Market Data (As of 12:25 IST)
| Index/Sector | Performance |
|---|---|
| Sensex | -567.79 pts (-0.69%) |
| Nifty 50 | -178.70 pts (-0.72%) |
| Nifty FMCG | -1.05% |
| India VIX | +7.13% to 15.02 |
| MidCap Index | -0.51% |
| SmallCap Index | -0.46% |
🧾 FMCG Stocks Under Pressure for 3rd Straight Day
The Nifty FMCG index declined 1.05% to 54,527.15, marking its third consecutive day of losses, with a cumulative fall of 2.97%.
Top Losers in the FMCG Sector:
- United Spirits: -2.26%
- United Breweries: -2.09%
- Colgate-Palmolive (India): -2.02%
- Godrej Consumer Products: -1.73%
- Varun Beverages: -1.37%
- Tata Consumer Products: -1.35%
- Emami: -1.17%
- Dabur India: -1.16%
- Hindustan Unilever: -0.93%
- ITC: -0.90%
The sector’s decline was driven by demand concerns, margin pressures, and higher input costs, all of which were exacerbated by geopolitical uncertainty.
“Investors are moving away from consumer-facing sectors amid inflationary concerns and defensive buying in commodities,” said Aarti Shah, Equity Strategist, at Nuvama Wealth.
📉 India VIX Jumps as Volatility Spikes
The India VIX, which tracks near-term market volatility, surged 7.13% to 15.02, signaling growing unease among traders.
The Nifty 26 June 2025 futures traded at 24,744.80, a 34-point premium to the spot level, indicating a mildly bullish bias despite short-term caution.
Option Chain Highlights (26 June 2025):
- Maximum Call OI: 61.6 lakh at 26,000 strike
- Maximum Put OI: 50.1 lakh at 24,000 strike
🏦 Broader Market & Stock Spotlight
Despite the weakness in frontline indices, broader markets fared slightly better:
- BSE Mid-Cap Index: -0.51%
- BSE Small-Cap Index: -0.46%
- Market breadth remained weak, with 1,270 stocks rising and 2,548 falling on the BSE.
🔍 Stocks in Focus:
✅ TANFAC Industries
- Jumped 4.04% after commissioning a 5,000 TPA Solar Grade Dilute Hydrofluoric Acid (DHF) plant.
- Positive sentiment around specialty chemicals amid defense and solar sector demands.
❌ CSB Bank
- Fell 0.87% despite RBI approval for reappointment of MD & CEO Pralay Mondal for three years from September 15, 2025.
📉 Inflation Update: A Silver Lining?
On the macro front, India’s CPI inflation dropped to 2.82% in May 2025, down from 3.16% in April, reaching its lowest level since February 2019.
Key Points:
- Food inflation fell to 0.99%, from 1.78% in April.
- It is likely to ease pressure on the RBI’s monetary policy stance but may be offset by crude price spikes.
“The inflation drop offers temporary relief, but rising crude and geopolitical risks could reverse the gains,” warned Rahul Bajaj, Economist at Centrum Broking.
📰 Global Market Impact and Oil Prices Surge
According to a recent report by CNBC, Brent crude futures rose over 6%, raising fears of imported inflation and putting pressure on emerging markets like India.
Read full details here: Crude Oil Jumps as Middle East Tensions Escalate – CNBC
“Rising energy prices are becoming a key macro risk for Asian markets,” the article noted.
❓ Frequently Asked Questions (FAQs)
1. Why is Nifty falling on May 13, 2025?
The Nifty fell due to global geopolitical tensions between Israel and Iran, the surge in oil prices, and weak sentiment in the FMCG and IT sectors.
2. Which FMCG stocks are the top losers today?
United Spirits, United Breweries, and Colgate-Palmolive are among the biggest laggards in the FMCG space.
3. What is India VIX and why is it rising?
India VIX measures market volatility. It rose due to increased uncertainty from geopolitical events and inflation fears.
4. How is crude oil affecting Indian markets?
Brent crude surged over 6% to $73.56/barrel, raising concerns about inflation and fiscal balance, leading to risk-off sentiment in equities.
5. Is inflation in India under control?
India’s CPI inflation eased to 2.82% in May 2025, its lowest in over six years, driven by falling food prices. However, rising oil may pose a risk.
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