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Nifty ends lower amid escalating US-China tariff tensions

02 Jun 2025 Evaluate

Indian equity benchmark -- Nifty -- ended lower on Monday amid escalating US-China tariff tensions. Index made gap-down start following broadly negative cues from other Asian markets as US president Donald Trump announced import tariffs on steel and aluminium will double to 50 percent starting June 4, in what he called a move to protect domestic industry. This move came after China violated Geneva trade agreement with US. Sentiments remained weak after traders took note of FII Exchange data showing that Foreign Institutional Investors (FII) sold shares worth nearly Rs 6,449.74 crore on Friday. In afternoon session, index trimmed most of its losses and started wavering near to its neutral line. Market participants were cautious as India’s manufacturing sector experienced a slight slowdown in May 2025, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) dipping to 57.6 from 58.2 in April. In last leg of the trade, index continued its choppy trade but unable to end the session in green terrain and closed below 24,750 mark.

Traders were seen piling up positions in Realty, PSU Bank and FMCG, while selling was witnessed in IT, Metal and Consumer Durables. In the index option segment, maximum OI continues to be seen in the 25900 - 26100 calls and 23900 - 24100 puts indicating this is the trading range expectation.

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