Stock Market Update: Sensex and Nifty Decline Amid Global Uncertainties
June 3, 2025 – Mumbai, India – In a day marked by turbulence in the equity markets, India’s benchmark indices, the BSE Sensex and NSE Nifty, saw notable drops, closing significantly lower amid a wave of selling pressure triggered by foreign fund outflows and escalating geopolitical tensions.
Market Performance
The Sensex, which is a key indicator of the Bombay Stock Exchange, closed down by 636.24 points, or 0.78%, settling at 80,737.51. During the trading session, it even fell to a low of 80,575.09, reflecting a drop of 798.66 points or 0.98% at its lowest point. The Nifty Index followed a similar trajectory, plunging 174.10 points, or 0.70%, to finish at 24,542.50.
Factors Influencing the Decline
A broad-based selloff characterized the market today, affecting nearly all sectors. Among the prominent laggards on the Sensex were major players like Adani Ports, which saw a decline of 2.42%, and other well-known stocks including Bajaj Finserv, Bajaj Finance, Power Grid, IndusInd Bank, Maruti, Tata Consultancy Services, and UltraTech Cement. Notably, Mahindra & Mahindra emerged as the sole gainer in an otherwise negative day for the index.
Investors were particularly spooked by ongoing international incidents such as a Ukrainian drone strike that reportedly destroyed Russian aircraft, which has led to increased military tensions in the region. Compounding these concerns were aggressive trade policies from the U.S., including threats from President Trump to double tariffs on steel and aluminum, escalating fears of a global trade confrontation.
Commodity Prices: Gold and Silver Surge
In contrast to equities, commodities such as gold and silver surged as investors flocked to safe-haven assets amid geopolitical uncertainties. Gold prices experienced a rise of nearly 3%, while silver surged by 5%. Current gold prices stand at ₹96,660 per 10 grams, a decline of ₹264, while silver traded at ₹100,630 amid a drop of ₹381. Analysts note that gold has broken its recent trading ranges, indicating possible further increases if momentum continues.
Currency Market Reaction
Additionally, the Indian Rupee faced pressure, declining 21 paise against the U.S. dollar, trading at ₹85.60. Factors contributing to this depreciation include a strengthening U.S. dollar and persistent foreign institutional investor (FII) outflows amidst the rising global tensions.
Broader Market Sentiment
Market sentiment overall was bearish, with 2,208 stocks declining compared to just 1,753 advancing on the BSE. A total of 4,114 stocks were traded, with 105 reaching a 52-week high and 34 hitting a 52-week low, indicating a market in flux. The day also witnessed a mix of stock performances across sectors, including TVS Motor Company, which remained flat at ₹2,755.20 after announcing a partnership aimed at promoting electric mobility.
In summary, June 3, 2025, reflected a challenging day for Indian equity markets, driven by external geopolitical pressures and local market dynamics, with a stark differentiation in the performances of stocks and commodities. Investors are advised to stay informed as geopolitical developments unfold and to closely monitor market indicators for potential adjustments to investment strategies.
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