Market Opening Bell: Sensex Falls 725 Points, NIFTY50 Below 25,600 as Global Trade Tensions Flare Up
Stock Market Today – June 2, 2025: Indian equity benchmarks opened sharply lower on Monday, dragged down by weak global cues, rising trade tensions between the US and China, and broad-based selling across key sectors. As the markets opened for the first session of June, investor sentiment remained cautious following the latest announcement by the US government to double tariffs on imported steel and aluminium.
Sensex and NIFTY50 Fall Sharply in Early Trade
At 9:24 AM, the S&P BSE Sensex had tumbled 724.54 points or 0.89% to 80,726.47. The NSE NIFTY50 index was down by 200.80 points or 0.81% and was trading below the 25,600 mark at 24,549.90. The sharp decline reflects heightened market anxiety over global macroeconomic uncertainties, especially those stemming from escalating tariff tensions.
What Triggered the Market Fall?
The market downturn is attributed largely to geopolitical developments. On May 30, US President Donald Trump announced a fresh round of tariff hikes, doubling duties on steel and aluminium imports. The move reignited fears of a prolonged trade war with China, sparking selloffs in global markets. Indian investors reacted to these external cues, leading to a risk-off sentiment.
In addition, weak quarterly earnings in the IT and auto sectors have further weighed on domestic market sentiment. Several heavyweight stocks witnessed intense selling pressure, dragging indices down.
Sectoral Performance: IT and Metals Under Pressure
Among the sectoral indices, Nifty IT emerged as the top loser, falling 1.22% amid concerns over global tech spending. Nifty Metal also dropped 0.88%, as fears of reduced global demand resurfaced. Other sectors that ended in the red included Nifty Consumer Durables (-0.63%) and Nifty Media (-0.52%).
Top NIFTY50 Gainers and Losers
Of the 50 NIFTY stocks, 36 declined while 14 advanced in the opening session. The top five losers were:
- Shriram Finance: -2.01%
- HDFC Bank: -1.87%
- Bajaj Auto: -1.81%
- HCL Technologies: -1.73%
- Reliance Industries: -1.72%
Meanwhile, the top gainers included:
- Apollo Hospitals: +2.51%
- Hindustan Unilever: +0.97%
- Bharat Electronics: +0.90%
- Adani Ports: +0.84%
- Mahindra & Mahindra: +0.75%
Global Markets Paint a Gloomy Picture
Asian indices mirrored the weakness in Indian markets. Japan’s Nikkei 225 fell by 1.52% to 37,387.75, Hong Kong’s Hang Seng slumped 2.61%, and South Korea’s KOSPI dropped 0.22%. The negative sentiment stemmed from fears that continued tariff escalations may disrupt global supply chains and hinder economic growth.
US markets closed mixed last Friday. While the Dow Jones managed to gain 54.34 points, the S&P 500 and Nasdaq Composite ended marginally lower, reflecting investor caution as President Trump balanced tough talk with optimism over trade negotiations with China.
Market Breadth and Volatility Spike
In early trade, 2,534 stocks were active on the NSE. Of these, 1,456 stocks declined, 994 advanced, and 84 remained unchanged—indicating bearish market breadth. Further, 24 stocks hit their 52-week lows, while only 36 touched new highs. The India VIX, a key gauge of market volatility, spiked 5.69% to 16.99, signaling heightened nervousness among traders.
Midcap and Smallcap: Mixed Momentum
The broader market showed a mixed trend. The Nifty Midcap 100 index rose marginally by 0.13%, while the Nifty Smallcap 100 declined by 0.09%. This suggests selective buying interest in midcap counters, even as smallcaps remained under pressure.
Expert Take: What Should Investors Do?
Market experts advise caution in the short term. With global uncertainties on the rise, it's crucial for investors to stick to fundamentally strong large-cap stocks and avoid aggressive bets. Defensive sectors like FMCG and healthcare may offer some shelter amid broader volatility.
“This kind of volatility is not unusual in times of macroeconomic stress. It’s important to stay patient and not act on panic,” said a senior market strategist from a leading brokerage firm.
Conclusion
The Indian stock market began June on a jittery note, with global trade tensions clouding the outlook. While the near-term trend remains volatile, investors are advised to maintain a long-term perspective and focus on quality assets.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a certified financial advisor before making any investment decisions.
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