Nifty continued its pessimistic trade for second consecutive day and closed the session with cut of over a percent on Monday due to escalating geopolitical jitters in west Asia and subsequently surging crude oil. Market made a gap-down start and remained under pressure throughout the day, as traders were concerned with fresh military exchanges between Israel and Iran, which dampened hopes of a potential US-Iran peace agreement. Besides, sentiments remained downbeat as Foreign Institutional Investors remained net sellers in the Indian equity market, offloaded equities worth Rs 8,776.25 crore on June 05, 2026. Further, 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.
