Indian benchmark indices Sensex and Nifty ended trading on June 3, 2025, marking their third straight session of losses. The Sensex fell 636.24 points to close at 80,737.51, while the Nifty lost 174.10 points, closing at 24,542.50. 

Market Dynamics & Key Drivers

Market sentiment was driven by uncertainty in trade, ongoing Foreign Portfolio Investor (FPI) outflows, and significant selling pressure in the financial and information technology (IT) sectors. On June 2, 2025, the FPIs were net sellers, registering a net outflow of ₹2,589.47 crore, while the Domestic Institutional Investors (DIIs) brought some counterbalancing by having made net buys worth ₹5,313.76 crore. In spite of overall weakness in the market, the realty sector showed strength, up more than 1 percent. Banking and IT stocks were seen as major drag points. The worst-hit was Adani Ports, followed by Bajaj Finserv and Coal India, while top gainers were Grasim, Shriram Finance, and M&M.

Corporate Activities & Sectoral Insights

A number of companies released important developments that affected their stock performance. Sansera Engineering's stock increased 1.33% on the NSE after revealing a contract with Airbus for production and supply of Airborne ICTM components. 

Orchid Pharma's stock jumped 4.56% after its wholly owned subsidiary, Orchid Bio-Pharma Limited, was granted a Corporate Guarantee. 

Deepak Builders & Engineers India saw its share rise of 2.82% after it was announced as the L1 bidder for the Unity Mall project worth ₹120.85 crore (excluding GST). 

In addition, Waaree Renewable Technologies received a huge ₹345 crore solar EPC contract for a 300 MW AC / 435 MW DC ground-mounted project in Rajasthan, Bikaner.

In the financial sector, DSP Mutual Fund launched two new index funds: the DSP Nifty IT Index Fund and the DSP Nifty Healthcare Index Fund. These funds aim to offer investors a strategic approach to participate in sectors perceived for their resilience and growth potential. Despite this, the broader IT hiring landscape continued to show weakness, with Naukri’s JobSpeak Index indicating a decline in the IT services segment. Meanwhile, AI/ML jobs significantly increased by 25% year-on-year. The chemicals industry overall experienced a downward price trend for the majority of chemicals in May 2025, except for Monoethylene Glycol, which recorded a steep 9% month-on-month increase led by seasonal demand. Godrej Properties revealed plans to build on a 14-acre land holding in Pune, with estimated revenue potential of around ₹4,200 crore.

 Global Economic & Geopolitical Influences

Global geopolitical tensions influenced commodity market dynamics, with higher crude oil futures prices influenced by fears of tighter global supplies. The Ukraine conflict maintained its grip on global commodity markets, initially spurring large rises in oil and gas prices, and spurring food inflation through interrupting supply chains for foodstuffs. Three years later, although the early market uncertainty has passed, the geopolitical implications remain, developing de-globalisation currents and encouraging European countries to focus on energy self-reliance and military expenditure. Locally, the Indian Rupee fell 10 paise against the US dollar, trading at ₹85.49, weighed down by a modest gain in the American dollar, high crude oil prices, and the foreign fund outflow.

Current Market Update

• The Sensex is trading at 81,039.12 down by 341.54 points or 0.42%.
• The NSE Nifty 50 is trading at 24,625.90 up by -92.15 points or -0.37%

Top 5 Gainers in the Market

• Hindalco 

• Opening Price: ₹636.00 
• Current Market Price (LTP): 636.05
• Percentage Change:0.78

Hindalco is up today, due to strong quarterly financial performance with a 63% year-on-year net profit increase, robust operational resilience, and positive market sentiment reflected by  rise in share price, supported by ongoing expansion projects and sustainable growth outlook.

• Grasim

• Opening Price: ₹2543
• Current Market Price (LTP):2541.50 
• Percentage Change:0.69 

Grasim is up today, primarily due to its Finance Committee approving the issuance of non-convertible debentures worth up to ₹1,000 crore, signaling strong capital-raising plans to support its growth initiatives, including expansion in decorative paints and specialty fibers, which boosts investor confidence despite mixed recent earnings.

•  HDFC Bank

• Opening Price: ₹1938
• Current Market Price (LTP): 1938.60
• Percentage Change:0.34

HDFC Bank is up today, following strong loan growth and improved asset quality reported in recent quarters, along with increased retail and corporate demand fueling optimism about its future earnings potential.

• Bel

• Opening Price: ₹387.50
• Current Market Price (LTP): 388.70
• Percentage Change: 0.31

BEL is up today , driven by positive market sentiment around its growing defense order pipeline and strategic importance in the government's push for indigenous defense manufacturing, boosting investor confidence in its long-term growth prospects.

• Bajaj Auto

•   Opening Price: ₹8513
•  Current Market Price (LTP): 8530.50
• Percentage Change:0.20

Bajaj Auto is up today,  as it continues to maintain strong profit margins through strategic focus on its core businesses and expanding electric vehicle revenue, which is boosting investor confidence despite global uncertainties.

Top 5 Losers in the Market

• HDFC Life 

• Opening Price: ₹748.40
• Current Market Price (LTP): ₹749.55
• Percentage Change: -2.24

HDFC Life is down today, due to a recent bearish technical signal and profit booking after a period of strong gains, coupled with a slight contraction in sales impacting investor sentiment.

• Bajaj Finance

• Opening Price:₹2039.10
• Current Market Price (LTP): ₹1985.20
• Percentage Change: -2.16

Bajaj Finance is down today, due to recent bearish technical signals such as the MACD and EMA crossovers, combined with a slight quarter-on-quarter revenue decline and increased selling pressure, leading to cautious investor sentiment.

• Adani ports 

• Opening Price: ₹1470
• Current Market Price (LTP): ₹1441.70
• Percentage Change: -1.79

Adani Ports is down today, following reports that US prosecutors are probing alleged links between Adani entities and Iranian LPG imports through the Mundra port, which has raised investor concerns despite the group’s denial of any wrongdoing. This has led to significant selling pressure and a decline in the stock price.

• Coal India 

• Opening Price: ₹399.70
• Current Market Price (LTP): ₹392.60
• Percentage Change: -1.78

Coal India is down today due to a marginal decline in coal production reported for May and a slight dip in quarterly revenue and net profit, which has weighed on investor sentiment amid broader market consolidation ahead of the RBI policy meeting. This has led to increased selling pressure despite steady coal offtake.

• Apollohospital 

• Opening Price: ₹6950
• Current Market Price (LTP): ₹6814.50
• Percentage Change: -1.46

Apollo Hospitals is down today , due to mild profit booking after recent gains and some cautious sentiment following its Q4 results, despite overall earnings being largely in line with expectations and steady operational performance. This has led to a slight dip in the stock price amid broader market fluctuations.

Indian Markets Prepare for RBI Policy During Consolidation

The Indian equities market is expected to open flat on June 3, 2025, as investor sentiment goes through a phase of consolidation and looks forward to the upcoming Reserve Bank of India (RBI) monetary policy meeting. 

Gift Nifty at 24,855 hints at a subdued opening to the trading day. Analysts universally anticipate market volatility to continue, driven largely by the risk-off approach of foreign portfolio investors (FPIs).

As the Q4 earnings season winds up, market players now turn their attention towards macroeconomic data points, most notably the RBI's policy announcements in the near future.

As of 9.35 AM , the Sensex slipped by 205.46 points or 0.23% to trade at 81,186.71, while the Nifty declined by 33.70 points or 0.14% to hover at 24,682.90 .

Global Cues

US stocks closed higher Monday (June 2), the first trading day of June, as markets brushed aside rising global trade tensions. The S&P 500 gained 0.41% to close at 5,935.94, and the Nasdaq Composite added 0.67% to close at 19,242.61.

The Dow Jones Industrial Average edged up 35.41 points, or 0.08%, closing at 42,305.48. The gains were made despite US-China trade tensions rising.

Beijing refuted Washington's allegations of violating a provisional trade accord and instead charged the US with a failure to live up to its responsibilities, implying a dimming prospect for negotiations between the world's two economic powerhouses. 

Foreign Fund Flows and Sectoral Performance

Provisional cash data as of June 2, 2025, indicated that Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) had a net sell of ₹2,589.47 crore, whereas Domestic Institutional Investors (DIIs) showed strong buying, with a net buy of ₹5,313.76 crore. 

Examining wider emerging market (EM) trends for April 2025, listed funds saw US$453 million of outflows on a global basis, with India seeing US$453 million of outflows by its EM peers.

India-dedicated funds, however, saw inflows of US$396 million, which consisted of US$251 million in ETF flows and US$145 million in non-ETF flows. 

Significantly, Asia ex-Japan funds' allocations to India rose to 17% from 16% in March, and by GEM funds to 19.5% from 18.7%.

On the sectoral side, Realty, Capital Market, and PSU Bank indices showed good performance with each gaining more than 2 percent. Selective Metal and IT stocks, on the other hand, saw profit booking at higher levels.

The IT sector is grappling with headwinds as the Naukri JobSpeak Index for May-25 came in at a 2.5% Month-on-Month (MoM) fall and a 4.8% Year-on-Year (YoY) fall in IT services hiring. Despite this, AI/ML jobs saw a sharp 25% YoY rise

Commodity Watch

Gold rates in India for various qualities 24 Karat Gold  ₹9,747 per gram. 22 Karat Gold  ₹8,936 per gram.In Bengaluru , ₹97,910/10 gm.

MCX Gold price in Bengaluru, ₹96,781/10 gm. Silver bullion price in Bengaluru, ₹1,01,200/kg. MCX Silver 999 price in Bengaluru, ₹1,00,098/kg.

US Dollar is 85.4 Indian Rupees. Today's forecasted low-high USD to INR prediction rates is INR 85.5833 - 85.7109. respectively. Variation in USD to INR rate compared to yesterday is -0.21%.

Crude oil futures climbed to about $62.9 a barrel on Tuesday, adding to gains for a second consecutive session as persistent geopolitical tensions heightened concerns about tighter global supply. Petrol price in Bengaluru shows no movement. The petrol price in Bengaluru rose to a high of ₹99.84 per litre and fell to a low of ₹99.84 per litre.

Stocks in Focus

HCL Technologies collaborated with UiPath to drive agentic automation across the world for smarter, autonomous business operations.

Biocon got CDSCO approval for its generic equivalent of Victoza for Type 2 diabetes, strengthening its diabetes-obesity business.

Torrent Power entered into a long-term LNG supply deal with BP Singapore to power its power plants and diversify its city gas operations.

Jindal Stainless invested ₹132 crore in a 282 MW hybrid renewable energy plant with Oyster Renewable Energy to power its plants.

Frontier Springs received orders worth ₹92.6 crore for air spring assemblies from Rail Coach Factory and Modern Coach Factory.

Man Industries sanctioned raising up to ₹300 crore from convertible warrants and equity shares.

Grasim Industries will raise up to ₹1,000 crore by issuing non-convertible debentures (NCDs).

Adani Group is facing U.S. scrutiny over suspected Iranian LPG imports through Mundra port, which it has denied undertaking.

Stellar Wealth Partners offloaded a 0.42% shareholding in Thomas Scott (India).

Tata AIG General Insurance acquired a 0.12% holding in AU Small Finance Bank from Leapfrog Rural Inclusion (India).

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