Sensex, Nifty recoup early losses as investors brush off Trump tariffs

Sectoral indices settled on a mixed note and the Nifty Realty emerged as top sectoral gainer

Stock Market Closing Bell, Monday, June 2, 2025: Indian equity benchmark indices witnessed a lacklustre session on Monday amid renewed concerns around US trade tariffs, rising Covid-19 cases and escalation in Russia-Ukraine conflict. However, the benchmarks recovered the losses in the second half to settle on a flat note.   After hitting intraday low of 80,654.26, the Sensex settled at 81,373.75, down by 77 points or 0.09 per cent. The Nifty50 closed at 24,716.6 levels, down by 34.10 points or 0.14 per cent.

 

However, broader markets defied the leading indices to settle in green. The NSE Midcap 100 index rose 0.62 per cent, while the NSE Smallcap 100 gained 1.19 per cent. 

 

According to Vinod Nair, head of research at Geojit Investments, the domestic market continued its consolidation phase for the third consecutive week, influenced by renewed concerns over a potential tariff war and escalating geopolitical tensions between Russia and Ukraine. 

 

"While global uncertainties have led investors to adopt a risk-averse approach, the Indian market has demonstrated resilience, underpinned by robust institutional inflows and selective sectoral strength like FMCG, real estate, and financial stocks. Supportive domestic macro indicators include a potential RBI rate cut, a better monsoon, Q4 GDP data and better GST collection. Under the current market landscape, investors are adopting a cautious short-term strategy, with a focus on domestically oriented and interest-sensitive sectors," Nair said.

  Sectoral indices settled on a mixed note. The Nifty Realty emerged as top sectoral gainer, up by 2.31 per cent, followed by Nifty PSU Bank up 2.15 per cent, and Nifty FMCG index up 0.81 per cent. Among others Nifty Bank, Energy, Media and Healthcare also settled in green. Other other hand, Nifty IT and Metal fell around 0.7 per cent each, followed by Consumer Durables, Pharma, Oil & Gas, and Financial Services.  

 

From the Sensex constituents, 19 out of 30 stocks settled lower, falling up to 1.5 per cent. The top laggards included Tech Mahindra (1.45 per cent), Tata Steel (1.09 per cent), Tata Motors (1.06 per cent), Infosys (0.71 per cent), HDFC Bank (0.69 per cent) and Kotak Mahindra Bank down 0.6 per cent. Among the gainers were Adani Ports, Mahindra & Mahindra, Power Grid, Hindusta Unilever, and Eternal.  Ajit Mishra, senior vice president for research at Religare Broking said that while domestic cues remain favorable, global uncertainty continues to keep participants on edge, delaying the next directional move in the index.  

  "On the index front, Nifty’s rebound after an intraday dip below its short-term moving average (20 DEMA) indicates that the bulls are not ready to loosen their grip, keeping hopes of a recovery alive. Amidst all this, buoyancy in select themes and the broader market is offering ample trading opportunities, so participants should remain focused accordingly," Mishra said.