The BSE Sensex, India’s key benchmark index, is trading over 700 points lower in the morning session
The Indian stock market is trading in negative territory today as major indices remain under pressure due to weak global cues. Investors are cautious following news about renewed trade tensions between the United States and China. At the same time, some domestic economic indicators remain strong, helping reduce some of the negativity in select areas of the market.
Sensex and Nifty Decline in Morning Trade
The BSE Sensex, India’s key benchmark index, is trading over 700 points lower in the morning session. It has slipped below the 81,000 mark and is currently moving in the range of 80,700 to 80,900. This marks a decline of nearly 0.9% compared to the previous close. Similarly, the Nifty 50 index is down and is trading around 24,550 to 24,600. It has also fallen by about 0.9%.
Both indices opened in the red despite some early signs of stability from GIFT Nifty futures, which had pointed to a flat or mildly positive start. However, market sentiment weakened quickly due to global uncertainties.
What’s Pulling the Market Down Today
The main reason for today’s weakness in the stock market is the global concern over a possible trade war between the United States and China. The US government has recently signaled that it may increase tariffs on steel and aluminum imports, especially targeting Chinese exports. This news has caused worry among global investors, including those in India, as trade restrictions can affect global economic growth.
Apart from trade issues, market participants are waiting for key economic data from the United States, including employment reports and policy signals from the Federal Reserve. These international factors are keeping investors cautious and limiting buying interest in Indian equities.
Strong Domestic Economy Offers Some Support
On the domestic front, India’s economy has shown strong growth. According to the latest data, India’s Gross Domestic Product (GDP) grew by 7.4% in the fourth quarter of the financial year 2024–25. This is a much better performance than what economists had expected and shows that domestic demand remains healthy.
Despite this positive news, global concerns are currently having a stronger impact on the market mood. The GDP growth figure has not been enough to drive the indices higher so far.
Which Sectors Are Falling the Most
Several important sectors are dragging the market down today. The Information Technology (IT) sector is one of the biggest losers. Shares of companies like Infosys, HCL Tech, and Tech Mahindra are trading lower due to fears about reduced global demand for tech services.
The metal sector is also facing pressure. Stocks like Tata Steel and Hindalco are falling due to concerns about international trade and pricing. If tariffs increase globally, metal companies may face lower export demand and tighter margins.
Reliance Industries, one of the heaviest-weighted stocks in both the Sensex and the Nifty, is also trading lower today. Its fall is adding to the pressure on the overall market.
Mixed Performance in Banking and Pharma Stocks
Banking stocks are showing mixed trends. While some private banks are trading flat, a few public sector banks and select financial companies have shown strength. Yes Bank, in particular, is performing better today, showing strong buying interest in early trade.
In the pharmaceutical space, the performance is uneven. Apollo Hospitals is trading in the green after reporting strong fourth-quarter results. However, other major pharma companies are trading either flat or slightly negative as the sector remains relatively stable.
Volatility on the Rise
The India VIX, which measures market volatility, has increased by around 8%. This jump indicates that traders are nervous and expect larger price movements in the short term. Higher volatility often leads to a cautious approach from institutional investors and traders, and this is being reflected in today’s market behavior.
Midcap and Smallcap Stocks Remain Resilient
Unlike the large-cap stocks that dominate the Sensex and Nifty indices, midcap and small-cap stocks are showing better strength. Many investors are still willing to buy select stocks in these categories, especially those with strong fundamentals or positive earnings trends.
While the broader market sentiment is weak, these segments are not falling as sharply and in some cases are trading in positive territory. This indicates that retail investors are still active and are looking for value-buying opportunities.
Looking Ahead: RBI Policy and Global Factors
Looking forward, traders and investors are closely watching two major events. The first is the upcoming monetary policy decision by the Reserve Bank of India (RBI), scheduled for June 6. Many are expecting a signal about interest rate changes. If the RBI maintains a supportive stance, it could bring relief to the markets.
The second major factor is global. US economic data, especially the upcoming non-farm payroll report and comments from Federal Reserve officials, will influence global markets. If the Fed takes a cautious tone or delays interest rate hikes, it could improve investor sentiment across the globe, including in India.
Technical Levels and Market Strategy
Technically, Sensex has support near the 80,300 level and resistance around 82,200. If it breaks below this support, further downside is possible. Nifty has key support around 24,500 and faces resistance at 25,000. A move above this resistance level would be needed to turn the market sentiment positive again.
In the current scenario, market experts suggest staying cautious. Traders are advised to avoid aggressive positions until there is more clarity. Defensive sectors like FMCG and healthcare could offer some safety during this volatile period. Long-term investors may look at mid- and small-cap stocks selectively, especially those showing consistent performance.
As of now, the Indian stock market is trading with losses. Both Sensex and Nifty are down by nearly 0.9%, impacted mainly by global trade worries and nervous investor sentiment. While India’s economic growth remains strong, it is not enough to offset the pressure from international concerns.
The rest of the trading day may remain volatile as market participants await more signals from global events and prepare for the upcoming RBI policy announcement. Investors are advised to remain alert and avoid risky trades during this uncertain phase.
