Indian equity benchmarks ended sharply lower on Monday, with both the Nifty and Sensex plunging around 1%, amid broad-based selling across sectors. Markets made a gap-down opening and remained under heavy selling pressure throughout session, due to weak global cues and escalating geopolitical tensions after fresh military exchanges between Israel and Iran, which dampened hopes of a potential US-Iran peace agreement.
Some of the important factors in trade:
RBI Governor warns projected weak monsoon could weigh on rural demand, private consumption: Traders remained cautious as the Reserve Bank of India (RBI) Governor Sanjay Malhotra cautioned that the projected shortfall in south-west monsoon rainfall could weigh on rural demand and private consumption.
FIIs offload equities worth Rs 8,776.25 crore in single day: Sentiments remained downbeat as Foreign Institutional Investors (FIIs) remained net sellers in the Indian equity market, offloading equities worth Rs 8,776.25 crore on June 05, 2026
India, US near completion of interim trade deal: Traders overlooked Commerce and Industry Minister Piyush Goyal’s statement that India and the US are moving towards closing all the open ends of the interim trade agreement, and both sides are likely to execute the very, very vibrant first phase of the pact by the middle of next month.
On the global front: European markets are trading in the red amid persistent concerns over escalating geopolitical tensions. Asian markets closed lower, tracking weak cues from Wall Street on Friday, where technology stocks declined sharply.
The BSE Sensex ended at 73524.26, down by 719.08 points or 0.97% after trading in a range of 73318.94 and 73934.35. There were 6 stocks advancing against 24 stocks declining on the index. (Provisional)
The top losing sectoral indices on the BSE were Realty down by 2.57%, Metal down by 2.43%, Telecom down by 2.28%, Basic Materials down by 2.09%, Industrials down by 2.06%, while there were no gaining sectoral indices on the BSE. (Provisional)
The top gainers on the Sensex were Power Grid Corp up by 1.56%, Bharti Airtel up by 1.13%, Bharat Electronics up by 1.09%, Tech Mahindra up by 1.03% and SBI up by 0.23%. On the flip side, Eternal down by 3.47%, Mahindra & Mahindra down by 2.34%, Tata Steel down by 2.32%, Bajaj Finance down by 2.27% and Trent down by 2.21% were the top losers. (Provisional)
Meanwhile, welcoming the monetary policy announcement, the Federation of Indian Chambers of Commerce and Industry (FICCI) President Anant Goenka has said that retaining the repo rate at 5.25% and maintaining a neutral stance is a balanced and prudent decision taken by the Reserve Bank of India (RBI) given the heightened global uncertainty. He noted that maintaining policy stability at this juncture provides confidence to businesses and investors alike.
FICCI also welcomed the proactive regulatory measures announced by the Ministry of Finance and the RBI to strengthen external sector resilience and facilitate capital inflows. It said the decision to review the regulatory framework for Foreign Portfolio Investments in Government Securities along with rationalisation of taxes on such investments will deepen the G-Sec market and attract greater participation of FPIs in Indian government securities.
Besides, it said that in addition, the steps introduced by the RBI like introducing forex swap facilities, facility for bearing full hedging costs to banks for raising foreign currency deposits from NRIs and OCIs will incentivise foreign capital inflows and strengthen India’s external sector. FICCI President further stated that ‘Today’s policy sends a reassuring signal that the government is dynamically utilizing its policy instruments to safeguard India's growth trajectory. By ensuring appropriate liquidity and introducing measures to support inflow of foreign capital, the government and the RBI are building a vital buffer against external volatility.’
The CNX Nifty ended at 23123.00, down by 243.70 points or 1.04% after trading in a range of 23070.15 and 23267.30. There were 10 stocks advancing against 40 stocks declining on the index. (Provisional)
The top gainers on Nifty were Max Healthcare Inst up by 3.15%, Power Grid Corp up by 1.63%, Tech Mahindra up by 1.11%, Nestle up by 0.99% and Bharat Electronics up by 0.93%. On the flip side, Wipro down by 8.40%, Eternal down by 3.55%, JIO Financial Services down by 3.39%, Shriram Finance down by 3.13% and Hindalco down by 2.76% were the top losers. (Provisional)
European markets were trading lower; Germany’s DAX lost 209.95 points or 0.86% to 24,549.10, France’s CAC fell 41.24 points or 0.5% to 8,177.00 and UK’s FTSE 100 decreased 1.82 points or 0.02% to 10,366.23.
Asian markets settled lower on Monday tracking a global tech selloff, higher US bond yields and as a surprisingly strong US jobs report added to fears that the Federal Reserve will keep interest rates higher for longer. Market sentiments were also dampened by rising Brent Crude prices after Iran and Israel exchanged missile strikes casting doubt on the future of a fragile ceasefire in the Middle East. Japanese shares slumped tracking Wall Street’s fall last Friday and after data showed the Japanese economy grew at a slower pace in the January to March quarter than had been initially estimated. The Kospi index crashed over 8%, tripping a circuit breaker that paused all trading for 20 minutes. This event was triggered for the nineth time in the index's history, marking the third time it has happened this year.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,959.34 | -68.40 | -1.70 |
Hang Seng | 24,657.06 | -304.89 | -1.22 |
Jakarta Composite | 5,342.14 | -252.63 | -4.73 |
KLSE Composite | 1,679.52 | -13.91 | -0.82 |
Nikkei 225 | 64,024.60 | -2,563.52 | -3.85 |
Straits Times | 4,963.67 | -86.29 | -1.71 |
KOSPI Composite | 7,484.41 | -676.18 | -8.29 |
Taiwan Weighted | 43,502.78 | -1,568.16 | -3.48 |
