Sensex, Nifty end lower as renewed global trade concerns weigh on sentiments
Mumbai, Jun 2 (PTI): Benchmark equity indices Sensex and Nifty on Monday ended marginally lower, following sluggish trends in global markets amid renewed global trade concerns.
Besides, the Russian-Ukraine conflict, sharp jump in Brent crude oil prices and foreign fund outflows dented investors' sentiment, experts noted.
After tumbling 796.75 points or 0.97 per cent to 80,654.26 in intra-day trade, the 30-share BSE Sensex witnessed volatile trends and later ended 77.26 points or 0.09 per cent lower at 81,373.75.
The NSE Nifty dipped 34.10 points or 0.14 per cent to settle at 24,716.60. During the day, it dropped 224.55 points or 0.90 per cent to 24,526.15.
"Benchmark indices closed lower with marginal losses in a volatile start to June. Markets started the week on a cautious, range-bound note, with Nifty-50 sharply lower at open on fresh trade tensions after the US announced the doubling of steel and aluminium tariffs to 50 per cent. Despite positive domestic cues after surprisingly strong GDP growth in the January-March 2025 quarter, markets were dragged lower in the morning on worsening global headlines ranging from trade to war.
"US and China traded barbs with each other over the weekend while Russia Ukraine conflict worsened after drone attacks. Markets soon staged a strong recovery erasing the sharp morning losses, as investors look forward to RBI meet and widely expected rate cut," Satish Chandra Aluri, Analyst, Lemonn Markets Desk, said.
From the Sensex firms, Tech Mahindra, Tata Steel, Tata Motors, Titan, HDFC Bank, IndusInd Bank, Infosys and Kotak Mahindra Bank were among the biggest laggards.
On the other hand, Adani Ports, Mahindra & Mahindra, Power Grid, Eternal and Hindustan Unilever were among the gainers.
The BSE midcap gauge jumped 0.58 per cent and smallcap index went up by 0.36 per cent.
Among sectoral indices, BSE Focused IT dropped 0.70 per cent, metal (0.58 per cent), teck (0.45 per cent), consumer durables (0.40 per cent), commodities (0.18 per cent) and oil & gas (0.13 per cent).
Realty surged 2.38 per cent, services (1.20 per cent), FMCG (0.65 per cent), utilities (0.57 per cent) and power (0.35 per cent).
In Asian markets, Japan's Nikkei and Hong Kong's Hang Seng settled lower, while South Korea's Kospi ended in positive territory. Markets in China were closed for a holiday.
European markets were trading lower in mid-session deals. US markets ended on a mixed note on Friday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,449.74 crore on Friday, according to exchange data.
US President Donald Trump on Friday said he would double tariffs on steel and aluminium to 50 per cent.
"The domestic market continued its consolidation phase for the third consecutive week, influenced by renewed concerns over a potential tariff war and escalating geopolitical tensions between Russia and Ukraine.
"While global uncertainties have led investors to adopt a risk-averse approach, the Indian market has demonstrated resilience, underpinned by robust institutional inflows and selective sectoral strength like FMCG, real estate, and financial stocks," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Meanwhile, India's manufacturing sector growth fell to a three-month low in May, restricted by inflationary pressures, softer demand and heightened geopolitical conditions, a monthly survey said on Monday.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell from 58.2 in April to 57.6 in May, highlighting the weakest improvement in operating conditions since February.
Supportive domestic macro indicators include a potential RBI rate cut, a better monsoon, Q4 GDP data and better GST collection, Nair added.
Indian economy expanded at a faster pace than expected in the last quarter of the 2024-25 fiscal, helping clock a 6.5 per cent growth rate in the year that elevated its size to USD 3.9 trillion and held promise of crossing the world's fourth-largest economy Japan in FY26.
The Indian economy grew at 7.4 per cent in January-March - the fourth and final quarter of April 2024 to March 2025 fiscal (FY25) - reflecting a strong cyclical rebound that was helped by a rise in private consumption and robust growth in construction and manufacturing.
Gross GST collections remained above the Rs 2 trillion mark for the second straight month, rising 16.4 per cent in May to over Rs 2.01 lakh crore.
Global oil benchmark Brent crude jumped 3.28 per cent to USD 64.84 a barrel.
On Friday, the BSE Sensex declined by 182.01 points or 0.22 per cent to settle at 81,451.01. The Nifty dipped 82.90 points or 0.33 per cent to 24,750.70.
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Cong takes swipe at PM over India not being part of US-led 'Pax Silica' grouping
New Delh (PTI) The Congress on Saturday said it is perhaps not very surprising that India is not part of a US-led strategic initiative to build a secure silicon supply chain, given the "sharp downturn" in the Trump-Modi ties, and asserted that it would have been to "our advantage if we had been part of this group".
Congress general secretary in charge of communications Jairam Ramesh took a swipe at Prime Minister Narendra Modi, saying the news of India not being part of the group comes after the PM had enthusiastically posted on social media about a telephone call with his "once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC".
In a lengthy post on X, Ramesh said, "According to some news reports, the US has excluded India from a nine-nation initiative it has launched to reduce Chinese control on high-tech supply chains. The agreement is called Pax Silica, clearly as a counter to Pax Sinica. The nations included (for the moment at least) are the US, Japan, the Republic of Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia."
"Given the sharp downturn in the Trump-Modi ties since May 10th, 2025, it is perhaps not very surprising that India has not been included. Undoubtedly, it would have been to our advantage if we had been part of this group."
"This news comes a day after the PM had enthusiastically posted on his telephone call with his once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC," the Congress leader asserted.
The new US-led strategic initiative, rooted in deep cooperation with trusted allies, has been launched to build a secure and innovation-driven silicon supply chain.
According to the US State Department, the initiative called 'Pax Silica' aims to reduce coercive dependencies, protect the materials and capabilities foundational to artificial intelligence (AI), and ensure aligned nations can develop and deploy transformative technologies at scale.
The initiative includes Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia. With the exception of India, all other QUAD countries -- Japan, Australia and the US -- are part of the new initiative.
New Delhi will host the India-AI Impact Summit 2026 on February 19-20, focusing on the principles of 'People, Planet, and Progress'. The summit, announced by Prime Minister Narendra Modi at the France AI Action Summit, will be the first-ever global AI summit hosted in the Global South.
Prime Minister Modi and US President Trump on Thursday discussed ways to sustain momentum in the bilateral economic partnership in a phone conversation amid signs of the two sides inching closer to firming up a much-awaited trade deal.
The phone call between the two leaders came on a day Indian and American negotiators concluded two-day talks on the proposed bilateral trade agreement that is expected to provide relief to India from the Trump administration's whopping 50 per cent tariffs on Indian goods.
In a social media post, Modi had described the conversation as "warm and engaging".
"We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the US will continue to work together for global peace, stability and prosperity," Modi had said without making any reference to trade ties.
