FX.co ★ Indian Stocks Start June Subdued

On the first day of trading in June, India's BSE Sensex experienced a slight decline, closing at 81,373.75. This marks the second session in a row where it has faced losses, largely due to downturns in the metals and IT sectors. The market was further unsettled by President Donald Trump's announcement of a potential 50% tariff increase on imported steel and aluminum beginning June 4, which revived global trade concerns. Additionally, volatility in foreign institutional investor activity and apprehension preceding the Reserve Bank of India's forthcoming monetary policy decision contributed to the market's nervous atmosphere. Domestically, the manufacturing sector's growth figures for May were adjusted downward to a three-month low. Significant losses were observed in companies such as Tech Mahindra, Tata Steel, Tata Motors, and Infosys, with losses reaching up to 1.5%. Further market pressure came from profit taking in key players like HDFC Bank and Reliance Industries. Conversely, some stocks saw renewed buying interest, including Adani Ports, M&M, Zomato (Eternal), PowerGrid, Bajaj Finserv, ITC, Asian Paints, and Nestle India.