Indian equity markets opened the week on a bearish note as escalating global trade frictions, weak cues from Asian peers, and rising geopolitical tensions triggered a broad-based selloff. The BSE Sensex slipped by 573.69 points, or 0.70 percent, to settle at 80,877.32, while the NSE Nifty dropped 162.75 points, or 0.66 percent, closing at 24,587.95. The slide in benchmark indices was largely attributed to profit booking in IT and metal counters, both of which have significant global exposure. In particular, investor sentiment was rattled by U.S. President Donald Trump’s remarks on doubling tariffs on steel and aluminium imports, which further intensified market fears over trade disruptions.
Highlights
Sensex declines over 570 points, ending at 80,877.32
Nifty slips below 24,600 to settle at 24,587.95
Trade war anxieties and Asian market weakness fuel selloff
Metal and IT sectors among the biggest losers
IT and Metal Stocks Lead the Decline Amid Intensified Tariff Concerns
The Nifty Metal index witnessed a steep intraday decline of nearly 1 percent, with frontline stocks such as JSW Steel, Hindalco, and Tata Steel shedding as much as 1.5 percent. The sector came under selling pressure after the White House hinted at the imposition of higher tariffs on steel and aluminium products starting June 4. The announcement raised fears of counter-retaliation from major global trading partners, particularly China. Simultaneously, IT companies, heavily reliant on North American markets for revenue, were battered by the ongoing uncertainties in U.S. trade policy. The Nifty IT index slumped by 1.25 percent as stocks like Infosys, Wipro, and Tech Mahindra were marked lower throughout the trading session.
Highlights
Nifty Metal down nearly 1% as global tariff risks escalate
JSW Steel, Hindalco, and Tata Steel lead the losses
Nifty IT drops 1.25% as export-driven revenues face uncertainty
Global trade uncertainty weighs on tech majors
Geopolitical Risks and Renewed US-China Tensions Add to Market Volatility
Geopolitical developments further clouded investor confidence. Reports confirmed that Ukraine launched drone strikes deep into Russian territory, targeting five military airbases, raising the prospect of retaliation from Moscow. These tensions unfolded just hours before scheduled peace talks in Turkey, adding a layer of geopolitical instability to already jittery markets. Meanwhile, trade relations between the United States and China took another negative turn as Beijing pushed back against accusations from President Trump of violating trade norms. China’s Commerce Ministry labeled the claims as “groundless” and warned of “forceful measures” in retaliation, further reviving memories of the damaging 2018–2019 trade war. These evolving geopolitical and trade dynamics have increased investor risk aversion in emerging markets like India.
Highlights
Ukraine-Russia tensions rise as drone strikes hit Russian airbases
Peace talks scheduled in Turkey overshadowed by military escalation
US-China trade spat reignites with Beijing threatening retaliation
Global political instability adds to financial market unease
Broader Market Exhibits Mixed Sentiment Despite Large-Cap Pressure
Despite the weakness in large-cap stocks, mid and small-cap indices showed relative resilience. The BSE Midcap and Smallcap indices managed to close with modest gains of around 0.3 percent each, driven by stock-specific action in sectors like realty, FMCG, and PSU banking. Among individual stocks, Apollo Hospitals, Adani Ports, HUL, Adani Enterprises, and M&M emerged as notable gainers on the Nifty, highlighting a rotational strategy adopted by investors. Conversely, Hero MotoCorp, Bajaj Auto, HDFC Bank, JSW Steel, and Reliance Industries featured among the top laggards, dragging down index performance. Market breadth on the BSE remained marginally positive, with 1,783 stocks advancing, 1,565 declining, and 165 remaining unchanged.
Highlights
BSE Midcap and Smallcap indices gain 0.3% each
Selective buying in FMCG, PSU Bank, and Realty counters
Apollo Hospitals, Adani Ports among top Nifty gainers
Hero MotoCorp, Bajaj Auto, HDFC Bank lead Nifty laggards
Nifty Realty Index Outperforms; Select Real Estate Stocks Shine
One of the few bright spots in an otherwise volatile session was the Nifty Realty index, which ended the day nearly 1 percent higher. Strong buying was witnessed in stocks like Prestige Estates, Brigade Enterprises, and Anant Raj, which posted intraday gains of 3.64 percent, 2.9 percent, and 2.65 percent, respectively. The sector benefitted from robust quarterly results and continued optimism surrounding urban housing demand. Additional support came from institutional buying and investor rotation into defensives amid broader uncertainty. Oberoi Realty, Phoenix Mills, and Godrej Properties also closed with modest gains, signaling continued investor interest in quality real estate counters.
Highlights
Nifty Realty index rises nearly 1% despite weak broader market
Prestige Estates gains 3.64%, Brigade up 2.9%, Anant Raj rises 2.65%
Optimism over urban housing demand sustains sector momentum
Institutional interest remains firm in top-tier realty stocks
Institutional Selloff by Foreign Investors Exacerbates Market Weakness
Foreign Institutional Investors (FIIs) continued their selling spree in Indian equities, pulling out a massive ₹6,449.74 crore in the last session. The persistent outflow reflects their heightened sensitivity to global macroeconomic risks, including rising bond yields in developed markets, a stronger U.S. dollar, and geopolitical volatility. This trend has added to the downward pressure on Indian indices, particularly in heavy-weighted sectors like financials, IT, and energy. Domestic Institutional Investors (DIIs), on the other hand, tried to offer some support by selectively buying into dips, especially in the midcap space, but their efforts were not sufficient to offset the bearish sentiment driven by FIIs.
Highlights
FIIs sell ₹6,449.74 crore worth of Indian equities on Friday
Global bond yield pressures and dollar strength driving outflows
DIIs provide partial support in midcap segment
FII selling deepens weakness in frontline sectors like IT and banks
Sectoral Divergence Emerges as FMCG, PSU Banks, Realty Buck the Trend
While most sectors ended the day in red, selective buying was seen in FMCG, PSU Bank, and Realty indices, which closed higher by 0.6 to 2 percent. FMCG stocks gained on the back of defensive buying and anticipation of strong rural demand as monsoon forecasts remain favorable. PSU banks saw renewed traction amid better-than-expected quarterly results and increasing traction in credit growth. On the other hand, sectors such as auto, oil & gas, pharma, and metal remained under pressure, reflecting the prevailing risk-off sentiment. This divergence in sectoral performance underscores the cautious and selective approach adopted by investors amid a turbulent global backdrop.
Highlights
FMCG, PSU Bank, and Realty sectors outperform broader market
FMCG buoyed by rural demand optimism and monsoon forecasts
PSU Banks gain on healthy credit growth and earnings surprise
Auto, pharma, metal, and oil & gas sectors continue to witness selling pressure
