Mumbai, June 2 (IANS) Indian stock markets showed resilience on Monday, recovering strongly from early losses to end just mildly lower by the closing bell.
The Sensex ended the day at 81,374, down by 77 points or 0.09 per cent. However, this marked a sharp rebound of 719 points from the day’s low of 80,654.
Similarly, the Nifty closed at 24,717, slipping 34 points or 0.14 per cent, after recovering from its intra-day low of 24,526.
Investor sentiment was weak in the morning after US President Donald Trump announced higher tariffs on steel imports.
The proposed hike, from 25 per cent to 50 per cent, is expected to take effect from June 4.
On top of this, rising tensions between Russia and Ukraine, volatile foreign investment flows, and caution ahead of the Reserve Bank of India’s (RBI) policy decision all weighed on the market mood.
Despite the shaky start, buying interest in select heavyweight stocks helped limit the damage.
Shares of Adani Ports, Mahindra and Mahindra, Zomato (traded as Eternal), PowerGrid, Hindustan Unilever, Bajaj Finserv, ITC, ICICI Bank, Asian Paints, and Nestle India saw gains ranging between 0.4 per cent and 2 per cent.
In the broader market, the Nifty MidCap and Nifty SmallCap indices outperformed, ending with gains of 0.62 per cent and 1.1 per cent, respectively.
Among sectors, the Nifty IT and Nifty Metal indices were the worst hit, both falling 0.7 per cent due to concerns over the US tariffs.
On the other hand, the Nifty Realty and Nifty PSU Bank indices emerged as the top performers, each rising over 2 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,” Vinod Nair of Geojit Investments Limited said.
“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,” Nair stated.
He said that under the current market landscape, investors are adopting a cautious short-term strategy, with a focus on domestically-oriented and interest-sensitive sectors.
–IANS
pk/rad