Double whammy of rising geopolitical tensions & global tech sell-off rattles markets
Nifty closes near 23,100
Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets, both in India and globally.
In our latest episode of In The Money by Zerodha, we’re discussing a formula that has influenced everyone from professional gamblers to hedge fund managers and some of the greatest investors of all time — the Kelly Criterion.
If you have a strategy with an edge, how much should you bet on it? Most traders spend years trying to improve their entries and exits but spend very little time thinking about position sizing. Yet, the amount you allocate to a trade can have a bigger impact on long-term outcomes than the trade itself.
In this episode, we explore what the Kelly Criterion is, how it works, and why it remains one of the most debated ideas in finance. We’ll look at its fascinating origins, understand where it helps, where it falls short, and discuss how traders and investors can apply its principles in the real world without taking unnecessary risks.
Markets Today
Nifty opened with a big gap down of 286 points at 23,080, tracking the sharp sell-off in global markets after the Nasdaq plunged over 5%, with major Asian indices such as Japan and South Korea also witnessing heavy losses. Despite the weak start, the index saw some buying interest in the opening hour and gradually recovered toward the 23,180–23,200 zone.
The recovery continued through the late morning session, with Nifty reclaiming the 23,200 mark and moving higher to around 23,240–23,250 by 12:45 PM, marking the day’s high.
However, the momentum faded in the second half. The index gradually slipped lower, giving up most of its midday gains. Nifty drifted back toward the 23,150–23,170 zone by 2 PM.
Selling intensified in the final hour, dragging the index towards the 23,100 mark. Nifty eventually closed near the day’s low at 23,123, erasing nearly the entire intraday recovery.
The session was marked by a sharp gap-down opening, a steady first-half rebound, and persistent second-half weakness as global risk-off sentiment continued to weigh on domestic markets.
Sectoral Indices Performance
Winners & Losers
Commodities
FII / DII Flows
Here’s the trend of FII-DII activity from the last 5 days:
Thematic Indices
Tijori’s niche indices, where today’s move sorts pockets of the market beyond standard sector baskets. You can also track promoter buying and other interesting stuff, like Capex activity by the companies in the Tijori App’s idea dashboard
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 9th June:
The maximum Call Open Interest (OI) is observed at 23,500, followed by 23,400 & 23,300, indicating potential resistance at the 23,300 -23,400 levels.
The maximum Put Open Interest (OI) is observed at 23,000, followed by 23,100, suggesting support at 23,000-22,900.
Note: OI is subject to multiple interpretations; however, generally, an increase in Call OI indicates resistance in a falling market, while an increase in Put OI indicates support in a rising market.
Source: Sensibull
Top Stories in India
India’s index-eligible government bonds saw inflows of ₹4,490 crore ($469 million) on Friday, the highest in nearly a year, after authorities unveiled measures to encourage foreign investment and support the rupee. Dive deeper
The Indian rupee weakened by 56 paise to close at 95.74 against the US dollar, pressured by higher crude oil prices and a stronger dollar amid rising geopolitical tensions. Increased risk aversion in global markets also weighed on the domestic currency. Dive deeper
India posted a current account surplus of $7.1 billion, or 0.7% of GDP, in the January–March quarter of FY26, driven by robust services exports and higher worker remittances. For the full fiscal year, the current account deficit narrowed to $25.2 billion, or 0.6% of GDP, highlighting the resilience of India’s external sector despite global uncertainties. Dive deeper
India’s automobile retail sales rose 10% YoY to a record 2.53 million units in May, driven by strong demand across passenger vehicles, tractors, two-wheelers, commercial vehicles, and three-wheelers, according to the FADA. EV adoption also accelerated sharply, with electric vehicles accounting for over 11% of total registrations in May versus around 7% for FY26, aided by higher fuel prices. Dive deeper
India’s pharmaceutical market grew 10.9% YoY by value in May 2026 to ₹21,805 crore, supported by broad-based growth across therapies, new product launches, and improving demand trends. Chronic segments such as cardiac and anti-diabetes remained key growth drivers, while volume growth improved to 1.4%, indicating stronger underlying consumption. Dive deeper
Adani Ports and Special Economic Zone has secured a 10-year marine services contract for Argentina’s first LNG export project, marking its entry into South America. The contract, awarded to its subsidiary in partnership with Argentina-based Meridian Group, is valued at approximately $70 million (₹666 crore). Dive deeper
Top Stories Globally
WTI crude oil futures eased to around $91.5 per barrel after briefly crossing $95 earlier in the session, as Iran's announcement that it had ended military operations against Israel reduced fears of further escalation in the Middle East. The development improved prospects for US-Iran negotiations and a gradual restoration of oil exports through the Persian Gulf. Dive deeper
U.S. markets witnessed a sharp sell-off on Friday as stronger-than-expected jobs data raised concerns that the Federal Reserve may keep interest rates higher for longer. At the same time, weakness in AI-related stocks added to the pressure. The S&P 500 fell 2.6%, snapping a nine-week winning streak, while the Nasdaq dropped 4.2%, its steepest decline since April 2025, and the Dow Jones lost nearly 700 points. Dive deeper
Nvidia announced a series of partnerships in South Korea with major technology firms including SK Hynix and Naver. The deals aim to secure advanced memory chip supplies for Nvidia’s AI products while expanding its customer base, coinciding with CEO Jensen Huang’s visit to the country. Dive deeper
KOSPI plunged more than 8% on Monday, triggering a market-wide circuit breaker, as a global semiconductor selloff and escalating Middle East tensions sparked a broad risk-off move. The decline followed a sharp drop in US chip stocks after disappointing forecasts from Broadcom sent the Philadelphia Semiconductor Index down over 10%, its steepest fall since March 2020. Dive deeper
Saudi Aramco cut the July official selling price of its flagship Arab Light crude to Asia for a second consecutive month, lowering the premium by $6 per barrel to $9.50 above the Dubai/Oman benchmark. The move reflects softer demand and easing spot premiums despite ongoing supply disruptions linked to tensions involving Iran. Dive deeper
Management Chatter
In this section, we highlight interesting comments from the management of major companies and policymakers in the Indian and Global Economies.
Union Minister of Petroleum and Natural Gas Hardeep Singh Puri, on India’s preparedness to manage global disruptions:
“In the midst of all this crisis, in the midst of all this crisis, you have no dry out taking place in any part of the country, and you are still exporting,”
“What happens if Hormuz remains closed for another 30 days? We all have domestic situations, we have stocks ... my comfort point used to be 60-60-60 which means 60 days of crude oil, natural gas and LPG - which I do have; I would say that's comfortable,”
“But meanwhile, diversified supplies have also started. For instance, you know, we were very fortunate in having friends like the UAE; Sultan Jabbar called me late night, late one evening and he said, look, you wanted, brother, you wanted more LPG cargoes, I've got them ready, send the ships.” - Link
Amit Syngle, Managing Director & CEO of Asian Paints on overall demand:
“We got good growth both in rural and urban centers across.”
“Rural was a little bit ahead of urban growth of what we could really get in.” - Link
Sridhar Mantha, CEO – Generative AI Business Services (GBS) of Happiest Minds Technologies, on productivity gains due to AI:
“Traditional software development methods require 6 months to build such an application.”
“We won this project because we are able to actually complete the project in 3 months and deliver to the customer.” - Link
Corporate Actions & Events
Corporate Actions
Published by Zerodha. Not investment advice. Data from NSE, BSE, and MCX.
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i learnt a new word double whammy thankyou team zerodha