The Indian stock market today witnessed significant declines, with the BSE Sensex falling by 636.24 points (0.78%) to close at 80,737.51, and the NSE Nifty 50 dropping 174.10 points (0.70%) to settle at 24,542.50. This marks the third consecutive session of losses, driven by global trade tensions and foreign institutional investor (FII) outflows.

Sector Performance Highlights

Banking Sector

The Bank Nifty index declined after reaching a record high of 56,161 earlier in the session. Major banks like HDFC Bank and ICICI Bank contributed to the downturn, reflecting investor caution ahead of the Reserve Bank of India’s (RBI) policy decision.

Information Technology (IT)

IT stocks faced a cautious outlook amid market volatility and geopolitical uncertainties. Vinod Nair, Head of Research at Geojit Financial Services, flagged concerns due to global headwinds.

Automobile Sector

The Nifty Auto index closed at 23,268.70, near its 20-day EMA, indicating potential support levels. Stocks like Bajaj Auto and Mahindra & Mahindra showed resilience.

Pharmaceutical Sector

Pharma stocks remained relatively stable, with Dr. Reddy’s Laboratories posting modest gains. The sector’s defensive nature attracted investors amid market volatility.

Top 5 Gainers & Losers

Top 5 Gainers

Company	% Change
Grasim Industries	+1.28%
Shriram Finance	+1.00%
Bajaj Auto	+0.65%
Mahindra & Mahindra	+0.60%
Dr. Reddy’s Laboratories	+0.10%

Top 5 Losers

Company	% Change
Adani Ports	-2.32%
Adani Enterprises	-1.89%
Coal India	-1.85%
Bajaj Finserv	-1.74%
Power Grid Corporation	-1.67%

Note: YES Bank in the midcap segment fell by 10% following a block deal. 

FII/DII Net Flows

On June 3, 2025, FIIs were net sellers, withdrawing ₹2,853.83 crore, while DIIs were net buyers, investing ₹5,907.97 crore.

Key Macro-Economic & Global Drivers

• Global Trade Tensions: OECD projected U.S. growth to slow to 1.6% in 2025 due to tariff pressures.
• FII Outflows: High valuations and global uncertainty led to large FII exits.
• RBI Policy Anticipation: Investors await signals on interest rate direction from RBI.

What to Watch Next

• RBI Policy Decision: Will shape near-term market sentiment.
• Global Economic Updates: Monitor U.S. and China developments.
• Sectoral Trends: Watch banking and IT sector reactions.

For in-depth IPO analysis and forecasts, visit NextIPOIndia.

Official policy details available at the Reserve Bank of India.

This post is for informational purposes and does not constitute investment advice.