The Indian stock markets opened on a weak footing on the first trading day of June 2025, reflecting global uncertainty, renewed tariff tensions, and mixed domestic sentiment. Both the BSE Sensex and the NSE Nifty 50 witnessed volatile movements in early trade, extending the downward trend from the previous week.
At around 11 am, Sensex fell 448.99 points or 0.55%, trading at 81,002.02, while the Nifty slipped 126.90 points or 0.51%, to stand at 24,623.80. Earlier in the session, Sensex had tumbled over 660 points to 80,790, and Nifty had dipped below the 24,600 mark, hinting at persistent nervousness in the markets.
Global Headwinds: Tariffs Cloud Market Outlook
A significant contributor to the prevailing bearishness was the announcement by former U.S. President Donald Trump, who stated that steel and aluminium tariffs would be doubled to 50% starting Wednesday. This news shook global investor confidence, as it signalled escalation in trade protectionism, casting a shadow over export-dependent economies in Asia and stirring volatility across asset classes.
Asian markets responded with caution. Japan’s Nikkei 225 slipped 0.89%, and Topix lost 0.65%, while South Korea’s Kospi managed a modest 0.16% gain. The Australian ASX 200 remained nearly flat, showing no clear trend.
The news injected uncertainty into global equity markets, including India, which has significant trade exposure and is sensitive to external shocks.
Domestic Factors: Economic Strength Offers Some Support
Back home, investors found some reassurance in India's strong macroeconomic indicators. The Q4 GDP growth for FY25 came in at a robust 7.4%, exceeding analyst expectations. Growth in consumption and capital expenditure played a significant role, alongside lower inflation and expectations of further monetary easing by the Reserve Bank of India (RBI).
According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “The market is in a consolidation phase due to global headwinds like tariffs, but domestic tailwinds such as strong GDP and policy support should cushion deeper falls.”
Sectoral Trends: IT and Metals Drag, FMCG Lends Support
Despite strong economic fundamentals, sector-specific weaknesses continued to drag down market sentiment. IT and metal stocks led the fall, with sharp declines amid global trade concerns and weak forward outlooks.
At the same time, FMCG, realty, and PSU banks offered a counterbalance, posting modest gains between 0.4% to 1.5%. Nifty Bank was down 0.47%, while Nifty Auto fell 0.62% in early trade.
Top Gainers and Laggards
Among Sensex constituents, Hindustan Unilever, Nestle India, Adani Ports, and PowerGrid emerged as top gainers, showing resilience in defensive and infrastructure segments.
On the other end, Tata Steel, HCL Tech, Tata Motors, Tech Mahindra, and Reliance Industries were among the biggest laggards, weighed down by global cues and sectoral pressures.
Gold Steady Near Record Highs
In the commodities market, gold prices remained steady, trading close to record highs. On Monday, 24-carat gold was priced at Rs 95,940 per 10 grams, despite a minor weekly decline of 0.49%. Prices for 22-carat stood at Rs 87,945, and 18-carat gold was quoted at Rs 71,955.
The precious metal’s firm standing reflects investor preference for safe-haven assets amid geopolitical tensions and market volatility.
Wall Street Futures: Mixed Opening Expected
Across the Atlantic, U.S. stock futures signalled a mixed start to the week. S&P 500 futures dropped 0.4%, Nasdaq-100 futures slipped by a similar margin, while Dow Jones futures gained 54 points or 0.13% in early trades.
This suggests a lack of clear conviction among U.S. investors as they prepare for economic data releases and policy cues in June.
What to Watch This Week
The Indian market is expected to remain in a range-bound, volatile phase this week due to a combination of international and domestic factors:
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Global cues around U.S. tariffs, Fed policy expectations, and Chinese economic data
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Domestic focus on RBI’s monetary policy review, auto sales data, and corporate commentary
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Trends in foreign institutional investor (FII) flows and rupee movement against the dollar
For now, Nifty’s ability to hold above 24,600 and Sensex stability near 81,000 will be closely tracked by traders for directional clues.
