On Tuesday, 3 June 2025, Indian equity markets experienced a steep fall, marking their third consecutive day of decline. The market was rattled by negative developments around the Adani Group, including news of a US probe, and by weak global cues. Selling was widespread, though domestic institutional buying provided some cushion. All eyes are now on the RBI’s monetary policy outcome scheduled for later this week.
Table of Contents
- Key Indices Performance
- FII/DII Institutional
- IPO Market Highlights
- Top Gainers
- Top Losers
- Global and Economic Cues
- Outlook for 4–7 June 2025
- Final Takeaway
The Sensex closed at 80,737.51, down by 636.24 points or 0.78%.
TheNifty 50 ended the day at 24,542.50, a decline of 174.10 points or 0.70%.
Wrap-up:
Both indices breached key support levels amid relentless selling, driven by weak sentiment due to domestic corporate news and global uncertainties.
On 2 June 2025:
- Foreign Institutional Investors (FIIs) were net sellers worth ₹2,589.47 crore.
- Domestic Institutional Investors (DIIs) were net buyers worth ₹5,313.76 crore.
- The total net institutional inflow stood at ₹2,724.29 crore, positive due to strong domestic participation.
Wrap-up:
While foreign investors continued to pull out funds, DIIs stepped up their buying, reflecting long-term confidence in the Indian market.
New Listings (3 June 2025):
- Prostarm Info Systems listed at ₹125 on the BSE, a 19% premium over its issue price. On the NSE, it listed at ₹120, marking a 14.3% premium.
Wrap-up:
Investor response to IPOs was mixed. Companies with stronger fundamentals or sector alignment saw better listing gains, while others struggled to attract interest.
A few stocks managed to close in the green despite broad market weakness:
Wrap-up:
Positive movement was limited to select names in auto, finance, and small caps, suggesting investor focus on defensives and momentum plays.
Several large-cap stocks faced sharp declines:
- Adani Ports plunged by 3.97%, closing at ₹1,133.45, following news of a US probe.
- Bajaj Finserv fell 2.67% to ₹1,548.15, facing selling in the financial segment.
- Tech Mahindra dropped 2.59%, ending at ₹1,207.00, continuing the IT sector's recent underperformance.
- Adani Enterprises declined by 2.52% to ₹3,102.00.
- Bajaj Finance lost 2.45%, finishing the session at ₹7,185.00.
Wrap-up:
The sell-off was pronounced in Adani Group stocks, financials, and IT names, reflecting both stock-specific and sectoral concerns.
Key Drivers Affecting Sentiment:
- Adani Group Developments: Reports of a US investigation into the conglomerate triggered panic in related stocks.
- Global Tensions: Rising US-China trade tensions kept global markets on edge.
- RBI Monetary Policy (4–6 June): With inflation subdued but concerns around crude and currency rising, the RBI’s stance is crucial.
- Crude Oil Prices: Brent crude climbed to $64.96 per barrel, adding to India’s import bill stress.
- Rupee Depreciation: The rupee fell to 85.49 against the US dollar, affected by a stronger greenback, higher crude, and sustained FII outflows.
- US Federal Reserve: Structural changes in the Fed’s climate risk monitoring and expectations around rate cuts remain in market focus.
Wrap-up:
A volatile mix of domestic news and global uncertainty led to the sharp sell-off. Investors await clarity from the RBI before placing further bets.
Key Events to Monitor:
- RBI Monetary Policy (Decision on 6 June): Markets expect a dovish tilt or rate cut.
- PMI Data: Composite and Services PMI for May will be released on 4 June.
- Corporate Earnings: Final batch of Q4 FY25 results between 4–6 June.
- Global Factors: Movement in US economic data, bond yields, and commodities will impact foreign flows.
Markets ended sharply lower on 3 June 2025, weighed down by a combination of domestic regulatory concerns (especially involving the Adani Group) and global headwinds. Though DIIs provided robust buying support, it wasn't sufficient to counter the negative momentum. The performance of upcoming IPOs and the RBI’s monetary policy decision on 6 June will be pivotal in shaping market direction in the days ahead.