India’s benchmark share market indices, Sensex and Nifty50, started the day’s trade in red on Monday, June 2, 2025. The Sensex (30 firms index) tumbled 236.59 points to open at 81,214.42 on Monday. Meanwhile, Nifty50 (index with top 50 firms) was also down 81 points to open at 24,669.70 points.
Indian share market was weighed down by global concerns despite strong domestic GDP figures. The benchmark indices slipped in early trade on Monday, with investor sentiment dampened by renewed tariff threats from US President Donald Trump. The pressure came amid Trump’s announcement to revise tariffs on steel and aluminium, reigniting fears of a trade war and economic strain.
On the National Stock Exchange (NSE), sectoral indices displayed a mixed trend. Except for Nifty FMCG and Nifty PSU Bank, all other sectoral indices opened in the red, highlighting broad-based selling pressure. Nifty IT emerged as the worst performer among the indices, declining by 1.28%, indicating strong selling pressure in the technology sector.
Nifty Bank also saw a decline of 0.5%, Nifty 100 fell by 0.68 per cent, while Nifty Smallcap was down by 0.43%. The Midcap index showed relative resilience, but still opened 0.10% lower.
The negative sentiment was not confined to Indian markets alone. Other major Asian markets also opened weak on Monday. Japan’s Nikkei 225 dropped by more than 1.45%, Hong Kong’s Hang Seng Index declined over 2.3%, Taiwan’s Weighted index lost 1.61%, and Indonesia’s Jakarta Composite fell by 1.44%.
What Else For Share Market?
Market experts noted that while India’s macroeconomic fundamentals remain strong, as reflected in the robust GDP numbers, the external headwinds triggered by the US tariff revision have overshadowed the domestic positives. The threat of a wider impact on global trade and capital flows has made investors cautious.
Ajay Bagga, Banking and Market Expert, told ANI, “Asian markets are down as tariff tantrums and tax uncertainty rule sentiments. China-US public spat is not being taken seriously, given the rollback they did a month back after posturing. The 50% Steel and Aluminium tariffs announced by Trump from July 4th are a bit of a 1% type dampener.”
He further added, “Ukraine Russia conflict widening is a risk, but markets are ignoring it for now. Indian markets should have done well today on the back of a superb March quarter GDP print and expectations of a rate cut and further monetary easing at the RBI MPC later this week. However, the global weakness is holding the Indian markets also in its grip today.”
Sunil Gurjar, SEBI-registered research analyst and founder of Alphamojo Financial Services said, “Currently, the price is trading between a hurdle and support. A breakout above resistance would indicate a continuation of the uptrend in the sector. The Indian stock market concluded the week with mixed results, as benchmark indices registered their second consecutive weekly decline, while the broader market experienced some growth.”
