Stock market today: Indian frontline indices witnessed a highly volatile trading session on Monday, June 02, but managed to close with minor losses, as bulls ramped up buying after a weak opening, helping stocks recover from early declines.
Nifty 50 concluded the session with a mild cut of 0.14%, closing at 24,716 points, after recovering 189 points from the day’s low. The Sensex also recouped its early losses to end the session with a minor decline of 77 points, or 0.09%, at 81,373 points.
Despite large-cap indices swinging between gains and losses, the broader markets exhibited resilience and ended the session with solid gains, indicating that market breadth continues to favor the bulls. The Nifty Midcap 100 index closed with a gain of 0.62%, while the Nifty Smallcap 100 index ended even higher, up 1.19%.
Despite positive domestic cues—such as a stronger-than-expected Q4 GDP print, a rise in GST collections, and optimism over a potential RBI rate cut this week—rising global trade and geopolitical tensions cast a shadow on investor sentiment, leading to a roller-coaster ride for stocks in today’s session.
Why did the Indian stock market fall today?
1. Trump’s tariff jolt
US President Donald Trump on Friday threatened to double tariffs on imported steel and aluminium to 50 per cent from June 4. The fresh tariff jolt shook up markets globally. Major Asian markets, including Japan’s Nikkei and Hong Kong’s Hang Seng, dropped 1-2 per cent.
According to VK Vijayakumar, Chief Investment Strategist, Geojit Investments, Trump’s 50 per cent tariffs on steel and aluminium are a clear message that the tariff and trade scenario will continue to be uncertain and turbulent and keep impacting markets.
Meanwhile, simmering trade tensions between the US and China also weighed on sentiment. Bloomberg reported that “China has accused the US of violating their recent trade deal and vowed to take measures to defend its interests.”
2. Profit booking in select heavyweights
Market experts pointed out that investors appear to be booking profits in select heavyweights, including HDFC Bank and Reliance Industries, which is keeping the benchmark indices down.
Retail investors seem to be shifting money from large-caps to mid and small-cap segments amid earnings growth.
“The recent rally in mid and small-cap stocks has been significantly supported by retail and HNI participation, evident from surging volumes and mutual fund inflows into small-cap schemes,” said Vinit Bolinjkar, Head of Research at Ventura.
“However, it is not just retail froth—there is genuine earnings growth in many companies, especially those linked to manufacturing, defence, railways, and infrastructure,” Bolinjkar said.
3. FPI buying losing steam
Foreign portfolio investors (FPIs) have reduced their buying of Indian equities, which is weighing on the markets. Data show that FPIs sold Indian equities worth ₹6,449.74 crore in the cash segment in the previous session.
A fresh uptick in the dollar index and stretched valuations of Indian equities could be the reasons behind FPI buying losing steam.
4. The domestic market lacks fresh positive triggers
Experts say the domestic market lacks fresh positive triggers, which is why the key indices are not breaking above the range.
Strong economic growth outlooks underpin the sentiment for the medium to long term, but near-term triggers such as earnings growth and geopolitical developments keep investors on the sidelines.
“Tepid earnings growth is a challenge. If leading indicators suggest a recovery in earnings growth, there is a high probability of the market breaking out of the present range and moving higher,” said Vijayakumar.
Q4 earnings were slightly better than expectations, but forward estimates show weakness.
“The Q4FY25 earnings fared better than expectations. However, forward earnings revisions continue to exhibit weakness, with downgrades surpassing upgrades,” said Motilal Oswal Financial Services.
5. Technical factor
Technical experts say the Nifty could remain in a range as long as it stays below 24,900. Only a breakout above it could push the benchmarks higher.
“As long as the market remains within the range of 24,650 and 24900, a sideways, range-bound trend is expected to persist. If there is a successful breakout above 24900, it could push the market towards 25,150. Conversely, if the market breaches the 24,650 level, it could shift sentiment, leading to a retest of levels around 24,450,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
“We believe that the 20-day simple moving average (SMA) and the level of 24,650 would serve as key support zones for short-term traders, while the 25,150 level could act as a significant resistance area for the bulls,” Chouhan said.
Chouhan believes that if the index surpasses 25,150 or breaches 24,450, it may enter trending mode, and in that case, it may jump to 25,650 or fall to 23,900.
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
