The Indian stock market kicked off June on a rocky note as weak global cues and renewed US-China trade tensions spooked investors. Benchmarks tumbled early in the day, with some signs of recovery later. But the pain was evident.
Both SENSEX and NIFTY50 opened sharply lower after Donald Trump’s latest tariff announcement sent shockwaves through global markets. Traders weren’t just watching charts—they were watching headlines.
Early Carnage on D-Street Spooks Investors
By the time the bell rang Monday morning, the mood on Dalal Street had already soured. The S&P BSE SENSEX slumped nearly 797 points, close to a full percent down. Over on the NSE, the NIFTY50 dropped more than 224 points.
For context: the SENSEX fell as much as 0.97%, and NIFTY50 lost 0.9% in early trade. Key names like HDFC Bank, Reliance, and ICICI Bank saw red across the board.
Trump Tariff Drama Throws Cold Water on Global Mood
Turns out, the spark came from Washington. On May 30, former US President Donald Trump made waves yet again, announcing a fresh round of tariff hikes on metal imports. The hike, set to take effect June 4, will see steel and aluminium tariffs jump to 50% under Section 232 of the Trade Expansion Act of 1962.
That’s a big leap from the 25% rate imposed back in 2018.
And this time, it wasn’t just a headline. Asian stocks also felt the heat. Caution ruled across Tokyo, Seoul, and Hong Kong.
One sentence? Investors hate surprises.
Global Cues Add to the Jitters
Trump’s trade play wasn’t the only issue. Global cues weren’t doing the market any favors either.
Here’s a quick glance at what added fuel to the fire:
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US dollar gained strength, making emerging market assets less attractive
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Asia-Pacific indices opened weak across the board
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Crude oil prices remained firm, reviving inflation fears
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Investors booked profits ahead of key macro data from India
These weren’t standalone issues—they fed off each other. When global liquidity tightens, sentiment contracts. And that’s exactly what seems to be playing out here.
Recovery Attempts: A Bit of a Breather
Despite the heavy early losses, markets did find some footing later in the morning.
By late morning, the SENSEX had pared some losses and was trading around 80,981—still down by 469 points. NIFTY50 managed to hover above the 24,600 mark. That’s not a full rebound, but a breather nonetheless.
It wasn’t exactly confidence—it was caution.
A quick word on the market mood: mixed.
Here’s where the major indices stood at the time of recovery:
| Index | Intraday Low | Midday Level | % Drop From Previous Close |
|---|---|---|---|
| SENSEX | 80,654 | 80,981 | -0.58% |
| NIFTY50 | 24,520 | 24,610 | -0.45% |
Short-covering? Maybe. Bargain hunting? Possibly. But the uncertainty lingered.
Who Took the Biggest Hits?
Banking and heavyweights bore the brunt of the fall. HDFC Bank dropped 0.75%, Reliance slipped 0.45%, and ICICI Bank was down 0.35%.
All these names are vital index contributors, and when they move, so does the market.
It’s not just domestic sentiment—these companies have foreign investor exposure. So global risk-off flows tend to weigh on them more heavily.
One-liner? Big boys dragged the show down.
What Traders Are Saying on the Ground
Traders in Mumbai said the mood was cautious, if not outright pessimistic.
“We’re in a zone where global politics is driving sentiment more than earnings or valuations,” said a senior dealer at a leading brokerage, requesting anonymity. “The tariff headline caught the market off-guard.”
That aligns with what others are whispering. Markets are watching Trump. Again.
One trader joked, “We should just open late when the US sleeps in.”
Sentiment remains vulnerable. Any more surprises from Washington, and we could see more bleeding.
What’s Next on the Radar?
There’s more to come this week. And that’s making investors anxious.
India will release key macroeconomic numbers including GDP growth and inflation data. Add to that the US jobs report due later this week, and there’s a cocktail of volatility on the table.
A rate decision from the European Central Bank is also expected. That could shake up global liquidity expectations.
Here’s what’s making traders extra jittery:
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Upcoming Indian GDP and IIP data
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US non-farm payrolls (expected Friday)
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ECB’s policy stance on interest rates
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Oil price trends amid Middle East tensions
Basically, the next few sessions could stay bumpy. And with election-year drama heating up in the US, the surprises may keep coming.
