On Monday, June 2, 2025, the Indian equity markets showcased resilience, recovering significantly from their intraday lows despite closing marginally lower. The S&P BSE SENSEX ended at 81,373.75, down 77.26 points or 0.09%, while the NIFTY50 settled at 24,716.60, slipping 34.10 points or 0.14%. Support from banking stocks and the broader market fueled the recovery, even as global trade tensions, particularly US-China dynamics, kept investors cautious.
Key Market Highlights
Indian Market Performance
The Indian benchmark indices started the day on a weak note but staged a notable recovery, driven by buying in banking and midcap stocks. The NSE saw 3,014 stocks traded, with 1,529 advancing, 1,402 declining, and 83 unchanged. Notably, 68 stocks hit their 52-week highs, while 38 touched one-year lows. Additionally, 109 stocks reached their upper circuit limits, and 103 hit lower circuit bands.
The total market capitalization of NSE-listed firms stood at ₹443.28 lakh crore by the session’s close. The India VIX, a measure of market volatility, surged 6.71% to 17.61, reflecting heightened investor uncertainty amid global trade concerns.
Broader Market Outshines Benchmarks
The broader market outperformed the main indices, with the Nifty Midcap 100 gaining 0.62% to close at 57,775.55 and the Nifty Smallcap 100 rising 1.19% to 18,095.55. This strength in midcap and smallcap segments underscored the market’s depth and investor confidence in fundamentally strong companies.
Top Gainers and Losers
Among the NIFTY50 constituents, 29 stocks ended in the red, while 21 closed in the green. The top losers included:
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Hero MotoCorp: Down 2.05%
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HDFC Life Insurance: Down 1.53%
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JSW Steel: Down 1.48%
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Tech Mahindra: Down 1.45%
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Bajaj Auto: Down 1.24%
Banking stocks, however, provided crucial support, helping the indices recover from their intraday lows.
Global Market Context
Global markets presented a mixed picture, influenced heavily by US-China trade tensions. US President Donald Trump’s decision to double tariffs on imported steel and aluminum added pressure on investor sentiment. Key Asian indices reflected this:
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Japan’s Nikkei 225: Fell 1.32% to 37,470.67
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Hong Kong’s Hang Seng: Dropped 0.57% to 23,157.97
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South Korea’s Kospi: Bucked the trend, rising 0.05% to 2,698.97
In the US, markets closed mixed last week. The Dow Jones Industrial Average gained 0.13% to 42,270.07, while the S&P 500 and Nasdaq Composite declined 0.01% to 5,911.69 and 0.32% to 19,113.77, respectively. Trump’s comments on China, oscillating between criticism and optimism about a potential trade deal, kept markets on edge.
What Drove the Indian Market?
Several factors shaped Monday’s market dynamics:
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Banking Sector Support: Heavyweight banking stocks absorbed selling pressure and drove the recovery from the day’s lows.
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Broader Market Strength: Midcap and smallcap indices outperformed, signaling robust domestic investor participation.
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Global Trade Concerns: Trump’s tariff hikes on steel and aluminum raised fears of cost-push inflation and supply chain disruptions, impacting metal stocks like JSW Steel.
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Market Breadth: Positive market breadth, with more advancing stocks than declining ones, reflected underlying optimism.
Outlook for Investors
The Indian market’s ability to recover from its intraday lows highlights its resilience amid global uncertainties. Investors should keep an eye on:
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Global Trade Developments: Any progress in US-China trade talks could ease pressure on Asian markets, including India.
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Sectoral Trends: Banking and midcap stocks remain key areas of strength, offering potential opportunities.
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Volatility: With the India VIX at elevated levels, traders should brace for short-term fluctuations.
As the market navigates these challenges, staying informed about global cues and sectoral shifts will be crucial for making informed investment decisions.
