Markets staged a recovery from morning lows on Monday afternoon, with the Sensex trading at 81,315.51, down just 135.50 points or 0.17 per cent from its previous close of 81,451.01 as of 2:00 PM. The Nifty similarly pared losses to trade at 24,708.30, declining 42.40 points or 0.17 per cent from its previous close of 24,750.70.

The benchmark indices showed significant improvement from their morning session performance when the Sensex had opened at 81,214.42 and fallen to 80,761.49, down 689.52 points or 0.85 per cent. The Nifty had similarly slipped 182.60 points or 0.74 per cent to 24,568.10 after opening at 24,669.70 earlier in the day.

Market breadth remained positive with 2,081 stocks advancing against 1,946 declining stocks on the BSE, while 188 stocks remained unchanged. The session recorded 113 stocks hitting 52-week highs compared to 47 touching 52-week lows, with 298 stocks in upper circuit and 261 in lower circuit.

Adani Ports emerged as the top gainer on the Nifty 50, surging 2.80 per cent to 1,472.90 from its previous close of 1,432.80. Mahindra & Mahindra followed with a 1.97 per cent gain to 3,035.50, while Eicher Motors climbed 1.50 per cent to 241.88. Tata Consumer Products advanced 1.27 per cent to 1,120.30 and Adani Enterprises rose 1.27 per cent to 2,552.00.

Hero MotoCorp led the losers, falling 2.07 per cent to 4,220.00 from its previous close of 4,309.30. Tech Mahindra declined 1.66 per cent to 1,547.70, while HDFC Life dropped 1.45 per cent to 765.60. JSW Steel retreated 1.32 per cent to 980.35, and Tata Steel fell 1.25 per cent to 159.00.

Sectoral performance showed mixed trends with Nifty Bank gaining 0.17 per cent to 55,848.80, supported by earlier positive momentum. The Nifty Midcap 100 outperformed broader markets with a 0.60 per cent gain to 57,766.70, while Nifty Next 50 advanced 0.42 per cent to 67,041.85. However, Nifty Financial Services declined 0.32 per cent to 26,413.80.

The afternoon recovery came despite persistent concerns over escalating US-China trade tensions following President Trump’s announcement of doubling steel tariffs to 50 per cent. Market participants had earlier expressed caution over the potential impact of trade uncertainties on global markets.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, had noted that President Trump’s tariff measures signal continued uncertainty in the trade scenario, creating headwinds for markets. However, the afternoon session suggested investors were focusing on domestic fundamentals and stock-specific factors.

The market’s resilience was partly attributed to stronger-than-expected domestic GDP data, with fourth-quarter growth reaching 7.4 per cent, the highest across all quarters of FY25. Full-year growth came in at 6.5 per cent, meeting official estimates and providing support to investor sentiment.

Trading volumes remained robust across major stocks, with Eicher Motors recording the highest volume at 3.88 crore shares, followed by Tata Steel at 2.46 crore shares. Adani Ports and Mahindra & Mahindra also saw significant trading activity with volumes exceeding 2 crore shares each.

Technical analysts remained watchful of key support and resistance levels, with the Nifty’s recovery suggesting buyers were stepping in at lower levels. The market’s ability to pare morning losses indicated underlying strength despite global headwinds.

Commodity markets continued to reflect global tensions, with crude oil futures trading higher following geopolitical developments. The recovery in domestic equities occurred alongside broader market volatility driven by international factors.

Published on June 2, 2025