Indian Stock Market Opens Lower Amid Global Trade Concerns
Market Overview
On Monday, June 2, 2025, India's primary stock market indices, the Sensex and Nifty50, began trading on a negative note. The Sensex, which tracks 30 major companies, fell by 236.59 points, starting at 81,214.42. Similarly, the Nifty50, representing the top 50 firms, dropped 81 points to open at 24,669.70.
Despite positive domestic GDP figures, the Indian stock market faced pressure from global uncertainties. Investor confidence was shaken by renewed tariff threats from US President Donald Trump, who announced plans to revise tariffs on steel and aluminum, raising fears of a potential trade war.
Sector Performance
On the National Stock Exchange (NSE), sector performance was mixed. Most sectoral indices opened lower, with the exception of Nifty FMCG and Nifty PSU Bank, indicating widespread selling. The Nifty IT index was the worst performer, declining by 1.28%, reflecting significant selling in the technology sector.
The Nifty Bank index decreased by 0.5%, while Nifty 100 fell by 0.68%. The Nifty Smallcap index was down by 0.43%, and although the Midcap index showed some resilience, it still opened 0.10% lower.
Global Market Trends
The negative sentiment was not limited to India; other major Asian markets also opened lower. Japan's Nikkei 225 fell by over 1.45%, Hong Kong's Hang Seng Index dropped more than 2.3%, Taiwan's Weighted index lost 1.61%, and Indonesia's Jakarta Composite declined by 1.44%.
Expert Insights
Market analysts pointed out that while India's macroeconomic indicators remain strong, as evidenced by solid GDP figures, external challenges from the US tariff changes have overshadowed these domestic strengths. The potential for broader impacts on global trade and capital flows has made investors more cautious.
Ajay Bagga, a banking and market expert, commented, "Asian markets are down due to tariff issues and tax uncertainties. The ongoing China-US tensions are being downplayed, especially after recent rollbacks. Trump's announcement of 50% tariffs on steel and aluminum starting July 4th is a minor dampener."
He added, "The escalating Ukraine-Russia conflict poses a risk, but markets are currently overlooking it. Indian markets should have performed better today given the impressive GDP report for March and expectations of a rate cut from the RBI MPC later this week. However, global weaknesses are affecting Indian markets as well."
Sunil Gurjar, a SEBI-registered research analyst and founder of Alphamojo Financial Services, noted, "The market is currently trading between resistance and support levels. A breakout above resistance could signal a continuation of the upward trend. The Indian stock market ended the previous week with mixed results, as benchmark indices faced their second consecutive weekly decline, while the broader market showed some growth."