Indian stock markets recovered sharply from early losses on Monday, displaying resilience despite global headwinds. Both benchmark indices ended the session marginally lower.
The Sensex closed at 81,374, down by 77 points or 0.09 per cent, after rebounding 719 points from the day’s low of 80,654. Similarly, the Nifty settled at 24,717, slipping 34 points or 0.14 per cent, recovering from an intraday low of 24,526.
Investor sentiment was initially dampened by the announcement from US President Donald Trump regarding a steep hike in tariffs on steel imports, increasing from 25 per cent to 50 per cent, effective June 4.
Adding to the cautious mood were rising geopolitical tensions between Russia and Ukraine, volatile foreign investment flows, and uncertainty ahead of the Reserve Bank of India’s monetary policy decision later this week.
Despite a weak opening, select heavyweight buying limited the downside. Notable gainers included Adani Ports, Mahindra & Mahindra, Zomato (Eternal), PowerGrid, Hindustan Unilever, Bajaj Finserv, ITC, ICICI Bank, Asian Paints, and Nestle India, which rose between 0.4 per cent and 2 per cent.
In the broader market, the Nifty MidCap and Nifty SmallCap indices outperformed, rising 0.62 per cent and 1.1 per cent, respectively.
Sector-wise, Nifty IT and Nifty Metal indices were the biggest laggards, falling 0.7 per cent on concerns over US tariff hikes. In contrast, Nifty Realty and Nifty PSU Bank indices led the gains, each advancing 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,” said Vinod Nair, Head of Research at Geojit Financial Services.
“While global uncertainties have made investors more risk-averse, the Indian market has shown resilience, supported by strong institutional inflows and sectoral strength in FMCG, real estate, and financials,” he added.
Nair noted that investors are currently adopting a cautious short-term strategy, favouring domestically-driven and interest-sensitive sectors.
–IANS
