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Key gauges end lower on Tuesday
Jun-03-2025

Indian equity benchmarks ended lower on Tuesday, weighed down by a widespread selloff amid renewed foreign fund outflows and growing geopolitical uncertainties. Rising crude oil prices and nervousness ahead of key RBI MPC outcome also weighed on investor sentiment. RBI's Monetary Policy Committee (MPC) will begin deliberations on its bi-monthly policy on Wednesday and the outcome is scheduled to be announced on June 6. 

Some of the important factors in today’s trade:

FPIs stay net sellers for second session: Foreign portfolio investors (FPIs) remained net sellers of Indian equities on Monday for the second straight session, selling up stocks worth Rs 2,589.47 crore, according to the provisional data from the National Stock Exchange.

Rupee falls against US Dollar: Indian rupee declined against the US dollar, weighed down by a firm American currency and outflow of foreign funds. The local unit remained under pressure tracking negative domestic equity markets amid geopolitical uncertainties.

Trump’s proposed 50% tariff hike likely to hit $5 billion engineering exports: The Engineering Export Promotion Council of India (EEPC India) has said that US President Donald Trump’s proposed 50 per cent tariff on steel and aluminium imports could severely impact India’s engineering goods’ shipments.

IBBI to streamline Insolvency process notifies amendments: With an aim to streamline procedures, protect creditor interests, and encourage greater investor participation in resolution processes, the Insolvency and Bankruptcy Board of India (IBBI) has notified amendments to the regulations governing corporate insolvency.

Global front: European markets were trading mostly in green as investors looked ahead to the European Central Bank's policy meeting later in the week. Asian markets ended mixed despite the White House flagging imminent trade talks with China and calling for best-offer proposals from trade partners to fast-track trade negotiations. 

Finally, the BSE Sensex fell 636.24 points or 0.78% to 80,737.51 and the CNX Nifty was down by 174.10 points or 0.70% to 24,542.50.

The BSE Sensex touched high and low of 81,774.23 and 80,575.09 respectively. There was 1 stock advancing against 29 stocks declining on the index. 

The broader indices ended in red; the BSE Mid cap index fell 0.52%, while Small cap index was down by 0.07%.

The few gaining sectoral indices on the BSE were Realty up by 1.24% and Basic Materials up by 0.17%, while Power down by 1.50%, Utilities down by 1.42%, Oil & Gas down by 0.95%, Bankex down by 0.89% and Energy down by 0.88% were the top losing indices on BSE.

The lone gainer on the Sensex was Mahindra & Mahindra up by 0.69%. On the flip side, Adani Ports &SEZ down by 2.42%, Bajaj Finserv down by 1.74%, Bajaj Finance down by 1.69%, Power Grid Corporation down by 1.62% and Eternal down by 1.53% were the top losers.

Meanwhile, expressing optimism over India’s economic growth, G20 Sherpa Amitabh Kant has said that the country’s economy, which is currently $4 trillion in size, is expected to be close to $30 trillion by 2047 and the country also has the advantage of younger demographics. He said ‘The demographics are very young. The Western part of the world is ageing and Japan has already aged, even China is ageing. India is just 28 and even when we become 100, the average age will be 35 years. It is a country of baby boomers’.

According to him, the country is a $4 trillion economy and just became the fourth largest economy in the world. While emphasising about sustainable urbanisation, he said the country will see around 5 million people getting into the process of urbanisation and there will be a need to create 500 new cities in India. He said ‘You need to create two new Americas in the next five decades. You need to create a Chicago every five years in India. That is the challenge for India’.

He also said that India's ambition is to create 400 airports. There are more than 150 operational airports in the country. He noted ‘You need great airports, great airlines, you need them to do long haul... IndiGo and Air India with their wide body aircraft should go out and compete with Emirates, Qatar Airways... We believe in competing in the marketplace’.

The CNX Nifty traded in a range of 24,845.10 and 24,502.15. There were 7 stocks advancing against 43 stocks declining on the index.   

The top gainers on Nifty were Grasim Industries up by 1.28%, Shriram Finance up by 1.00%, Bajaj Auto up by 0.65%, Mahindra & Mahindra up by 0.60% and Dr Reddy's Laboratories up by 0.10%. On the flip side, Adani Ports &SEZ down by 2.32%, Adani Enterprises down by 1.89%, Coal India down by 1.85%, Bajaj Finserv down by 1.74%, and Power Grid Corporation down by 1.67% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 2.99 points or 0.03% to 8,777.25 and Germany’s DAX gained 39.64 points or 0.17% to 23,970.31, while France’s CAC fell 19.11 points or 0.25% to 7,718.09.

Asian markets ended mixed on Tuesday amid the White House flagging imminent trade talks with China and calling for best-offer proposals from trade partners to fast-track trade negotiations. China's Shanghai Composite index rose as weak PMI data as well as looming trade risks spurred stimulus hopes. Hong Kong's Hang Seng index rallied, led by tech stocks with Tencent and Alibaba rising around 1 percent. Japanese markets gave up early gains to end flat with negative bias ahead of a fifth round of ministerial-level talks in the U.S. to be held this week. Meanwhile, South Korea market was closed for its presidential election.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,361.98

14.49

0.43

Hang Seng

23,512.49

354.52

1.51

Jakarta Composite

7,044.82

-20.25

-0.29

KLSE Composite

1,503.25

-5.10

-0.34

Nikkei 225

37,446.81

-23.86

-0.06

Straits Times

3,894.38

3.79

0.10

KOSPI Composite

--

--

--

Taiwan Weighted

21,126.93

124.22

0.59
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