Benchmark indices Nifty and Sensex remained under pressure on June 2, dragged down by weakness in IT, metal, and pharma stocks, though they trimmed losses by the afternoon. Amid the cautious mood, PSU banks stood out as a bright spot, extending their rally to nearly 5 percent in just two sessions. Meanwhile, the broader market staged a smart rebound, with mid- and small-cap indices swinging back into positive territory.
At about 12:25 pm, the Sensex was down 254.94 points or 0.31 percent at 81,196.07, and the Nifty was down 74.60 points or 0.30 percent at 24,676.10. About 1839 shares advanced, 1686 shares declined, and 154 shares were unchanged.
Follow our LIVE blog for all the latest market updates
"Fears of a Russia-Ukraine war escalation will weigh on markets in the short run," said Devarsh Vakil, Head of Prime Research at HDFC Securities, said. Ukraine launched drone attacks on five airbases and has destroyed planes deep in Russia's territory. Russia’s response might lead to the escalation of the war on the eve of the peace scheduled for today in Turkey.
"While global geopolitical and trade tensions, as well as domestic policy uncertainties, warrant close monitoring, the fundamental economic trajectory appears to be firmly supportive of continued market gains as we progress through the current quarter. The convergence of strong growth, accommodative monetary policy, and improving corporate fundamentals positions Indian markets for a potentially robust performance ahead," Vakil added.
Also read: Volatile debut: Leela Hotels shares erase listing losses to trade above IPO price
Sectoral trends on the NSE were mixed on June 2. The India VIX jumped 6.84 percent to 17.18, reflecting heightened volatility.
Among gainers, PSU Bank surged 2.19 percent, followed by Realty and Smallcap indices, which rose 1.72 percent and 1.02 percent, respectively. Midcaps gained 0.29 percent, while FMCG and Media indices were also in the green. On the flip side, Metal and IT indices dropped 0.84 percent and 0.87 percent, respectively. Consumer Durables slipped 0.75 percent, and Auto edged lower by 0.25 percent. Nifty Bank was largely flat, down 0.02 percent, while Energy and Private Bank indices ended almost unchanged.
Shares of Yes Bank jumped 6 percent on June 2 ahead of the lender's board meet on June 3 to consider fundraising. On May 28, the lender announced that its Board of Directors will meet on Tuesday, June 3, 2025, to consider a proposal for raising capital through the issuance of equity shares, debt securities, or other eligible financial instruments.
Read more: China's rare earth magnet curb: After Bajaj Auto, TVS Motor fears production hit, price rise
TVS Motor Company shares fell 2 percent after the company raised red flags over China’s curb on export of rare earth magnets - a critical EV motor component - just days after Bajaj Auto expressed production concerns. "The impact of the ban will begin to reflect in production by June or July," Sudarshan Venu, MD, TVS Motor said during an interaction with CNBC-TV18 on June 2, warning that the electric two-wheeler segment could be especially exposed.
Shares of Tata Motors slipped by over a percent after the company's vehicle sales nosedived 8.6 percent year-on-year in May 2025, as weakness in the domestic market weighed on overall performance. The automaker sold 70,187 vehicles across domestic and international markets last month, compared to 76,766 units in May 2024.
"Persistent rejection trades seen last week on all upside attempts point towards the lack of momentum required for large upsides. We feel that a dip to 24,500 could improve such hopes. That said, slippage past the same could, however, expose 24,060, though a collapse is less expected.
Alternatively, a direct rise above 25077 could clear the path for the intermediate objective of 25,235-25,460," Anand James, Chief Market Strategist at Geojit Investments Limited, said.
Adani Ports, Apollo Hospital, Adani Enterprises, M&M, and Tata Consumer Products were the top gainers on the Nifty. Laggards on the index included Hero MotoCorp, Bajaj Auto, JSW Steel, Titan Company, and UltraTech Cement.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
