Sensex drops 77 pts, Nifty closes under 24,750 amid global trade tensions

Equity benchmarks ended marginally lower today as global trade jitters resurfaced after U.S. President Donald Trump hinted at hiking tariffs on imported steel and aluminium to 50%, effective June 4. The Nifty closed below the 24,750 mark. Losses in metal and IT stocks outweighed the optimism sparked by upbeat domestic economic data.

The S&P BSE Sensex declined 77.26 points or 0.09% to 81,373.75. The Nifty 50 index fell 34.10 points or 0.14% to 24,716.60.

HDFC Bank (down 0.60%), Bajaj Finance (down 0.51%) and Reliance Industries (down 0.45%) were major drags.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.58% and the S&P BSE Small-Cap index added 0.36%.

The market breadth was positive. On the BSE, 2,128 shares rose and 1,992 shares fell. A total of 167 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.71% to 17.16.

Economy:

India's GDP growth touched a four-quarter high of 7.4% in Q4 FY25, with full-year growth ending at 6.5%, according to data released by the government post-market hours Friday. The GDP growth, higher than the previous quarter's 6.4%, was lower than the 8.4% growth logged in Q4 FY24.

Meanwhile, India?s fiscal deficit for FY25 stood at 4.8% of GDP, meeting the revised estimate, according to data released by the Comptroller General of Accounts on Friday. The central government?s fiscal deficit stood at Rs 15.77 lakh crore, or 100.5% of the revised annual target, compared with 95.4% a year before.

Further, the seasonally adjusted HSBC India Manufacturing Purchasing Managers? Index (PMI) declined to 57.6 in May 2025, down from 58.2 in April 2025, highlighting the weakest improvement in operating conditions since February. The headline figure was nevertheless well above both the neutral mark of 50.0 and its long-run average of 54.1.

Panelists suggested that demand strength continued to support sales and production, though competition, inflation, and the India-Pakistan conflict had reportedly weighed on growth.

Numbers to Track:

The yield on India's 10-year benchmark federal paper added 0.35% to 6.232 from previous close of 6.200.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.3950, compared with its close of 85.5550 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 1.43% to Rs 97,248.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.59% to 98.74.

The United States 10-year bond yield added 0.54% to 4.439.

In the commodities market, Brent crude for August 2025 settlement rose $2.03 or 3.23% to $64.81 a barrel.

Global Markets:

US Dow Jones futures were down 137 points, signaling a weak start for Wall Street.

European and Asian shares declined on Monday after U.S. President Donald Trump announced a fresh tariff hike on steel imports, sending jitters across global markets. Speaking to U.S. steelworkers late Friday, Trump said he would double tariffs on steel from 25% to 50%, effective Wednesday, June 4.

Markets in China, Malaysia, and New Zealand were closed for holidays.

Trump also took to Truth Social to confirm the June 4 rollout, claiming the hike was in response to China?s alleged breach of a recent trade agreement. He didn?t elaborate on how the deal was violated but added that he plans to speak with Chinese President Xi Jinping soon.

Wall Street ended last week on a mixed note. The S&P 500 was nearly flat, inching down 0.01% to close a strong month. The Nasdaq Composite slipped 0.32%, while the Dow Jones eked out a 0.13% gain.

Commerce Secretary Howard Lutnick backed the tariff decision over the weekend, saying the measures were ?not going anywhere?, even as they face stiff legal resistance. A federal trade court had recently blocked much of

Trump's tariff plans, but an appeals court swiftly reinstated them. The case now looks poised to head to the Supreme Court. Trump, undeterred, hinted he?d use alternative mechanisms to enforce the tariffs if necessary. This legal showdown is unfolding just weeks ahead of a key July deadline to ink new trade deals. If those talks fall through, Trump has threatened sweeping new tariffs on several major economies.

Monthly Auto Sales:

Tata Motors? fell 1.12%. The company's total sales stood at 70,187 units in May 2025, registering a decrease of 8.57% compared with 76,766 units in May 2024.

Bajaj Auto declined 1.16%. The company has recorded total sales of 3,84,621 units in May 2025, which is higher by 8.25% compared with the sales volume of 3,55,323 units sold in May 2024.

Hero MotoCorp fell 1.71%. The company said that it has dispatched 507,701 units of motorcycles and scooters during May 2025, which is higher 1.92% as compared with the dispatch figure of 498,123 units recorded in May 2024.

Mahindra & Mahindra added 1.58% after its overall auto sales grew by 17.33% to 84,110 vehicles sold in May 2025 as against 71,682 vehicles sold in May 2024.

SML Isuzu rose 1.18%. The company said that it sold 1,543 units in May 2025, registering a de-growth of 1.3% from 1,563 units sold in the same period last year.

Hyundai Motor India (HMIL) rose 0.51%. The company reported total sales of 58,701 units in May 2025, marking a marginal increase of 1% from 58,502 units sold in May 2024, including 43,861 units sold in the domestic market and 14,840 units exported.

Eicher Motors added 0.34%. The company has reported 26% jump in total motorcycle sales to 89,429 units in May 2025 from 71,010 units in May 2024.

Atul Auto shed 0.25%. The company reported 7.34% increase in total sales to 2,502 units in May 2025 as against 2,331 units sold in May 2024.

Ashok Leyland fell 0.13%. The company reported a 5% rise in total commercial vehicle sales to 15,484 units in May 2025 from 14,682 units sold in May 2024.

TVS Motor Company shed 0.64%. The company has registered sales of 431,275 units in May 2025, which is higher by 17% as compared with the 369,914 units sold in May 2024.

Escorts Kubota gained 1.83% after the tractor manufacturer announced that its agri-machinery business division recorded a marginal 0.7% year-on-year increase in sales to 10,354 units in May 2025, compared to 10,286 units sold in May 2024.

Stocks in Spotlight:

Yes Bank surged 8.3% ahead of its board meeting scheduled for 3 June 2025, where it will discuss plans to raise capital through equity, debt, or a mix of instruments.

Genus Power Infrastructures spurted 6% after the company's standalone net profit surged 312% to Rs 129 crore, while revenue from operations climbed 123% to Rs 937 crore in Q4 March 2025 over Q4 March 2024.

AstraZeneca Pharma surged 17% after the company's standalone net profit rose 47.54% to Rs 58.25 crore, while revenue from operations rose 25.39% to Rs 480.48 crore in Q4 March 2025 over Q4 March 2024.

Niva Bupa Health Insurance Company dropped 9.98% after heavy block deal activity early today, 2 June 2025. While the buyers and sellers remain unnamed, media reports suggest that Fettle Tone LLP and managing director and chief executive officer Krishnan Ramachandran were to sell 13.2 crore shares or 7.2% of equity in Niva Bupa Health Insurance Company through block deals. The expected block size for the transaction was around Rs 1,082 crore.

SPML Infra soared 4.53% after the company has secured a significant new project worth Rs 258 crore from the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB).

FSN E-Commerce Ventures (Nykaa) tumbled 4.33% after the company?s consolidated net profit fell 22.36% to Rs 20.28 crore on 9.06% fall in revenue from operations to Rs 2,061.76 crore in Q4 FY25 over Q3 FY25.

Alembic Pharmaceuticals declined 2.19% after the United States Food and Drug Administration (USFDA) issued Form 483 with four observations to the company?s Panelav API-I & II facility.

New Listing:

Shares of Schloss Bangalore (The Leela) settled at Rs 435.55 on the BSE, a premium of 0.13% compared with the issue price of Rs 435.

The scrip was listed at Rs 406.50, exhibiting a discount of 6.55% to the issue price. The stock has hit a high of 438.80 and a low of 404.45. On the BSE, over 7.32 lakh shares of the company were traded in the counter.

Shares of Aegis Vopak Terminals settled at Rs 241.95 on the BSE, a premium of 2.96% compared with the issue price of Rs 235.

The scrip was listed at Rs 220, exhibiting a discount of 6.38% to the issue price. The stock has hit a high of 241.95 and a low of 220. On the BSE, over 23.94 lakh shares of the company were traded in the counter.

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