Mumbai– Indian stock markets rebounded sharply from early losses on Monday, showing resilience amid global headwinds to close with only marginal declines.
The benchmark Sensex closed at 81,374, down just 77 points or 0.09%, after recovering from an intraday low of 80,654, a rebound of over 700 points. Similarly, the Nifty 50 ended at 24,717, slipping 34 points or 0.14%, after bouncing back from its session low of 24,526.
Morning sentiment was weighed down by external pressures, including U.S. President Donald Trump’s announcement of a proposed increase in steel tariffs from 25% to 50%, set to take effect on June 4. Rising geopolitical tensions between Russia and Ukraine, volatile foreign investment flows, and caution ahead of the Reserve Bank of India’s upcoming monetary policy decision also contributed to the initial sell-off.
However, buying in select heavyweight stocks helped offset losses and stabilized the market. Gainers included Adani Ports, Mahindra & Mahindra, Zomato (traded as Eternal), PowerGrid, Hindustan Unilever, Bajaj Finserv, ITC, ICICI Bank, Asian Paints, and Nestle India, which rose between 0.4% and 2%.
In the broader market, midcap and smallcap stocks outperformed, with the Nifty MidCap rising 0.62% and the Nifty SmallCap gaining 1.1%.
Among sectors, Nifty IT and Nifty Metal bore the brunt of tariff concerns, each falling 0.7%. In contrast, Nifty Realty and Nifty PSU Bank stood out as top performers, both climbing over 2%.
“The domestic market continued its consolidation phase for the third straight week, influenced by fresh concerns over a potential tariff war and ongoing geopolitical tension,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Despite global uncertainties prompting a risk-averse sentiment, Indian markets have shown notable resilience, supported by strong institutional inflows and strength in selective sectors like FMCG, real estate, and financials,” Nair added.
He noted that investors are currently treading cautiously, favoring domestically focused and interest-sensitive sectors amid the uncertain global backdrop. (Source: IANS)
