The PSU Bank index surged nearly 3 per cent, while the metal and IT sectors dragged the indices lower.
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Markets closed lower on Friday as investors turned cautious after a US federal appeals court reinstated tariffs on foreign imports, overshadowing positive foreign portfolio investor flows and expectations of solid domestic GDP data.

The benchmark Sensex dropped 182.01 points or 0.22 per cent to close at 81,451.01, while the Nifty 50 fell 82.90 points or 0.33 per cent to 24,750.70. The indices opened marginally lower, with Sensex at 81,465.69 against its previous close of 81,633.02, and Nifty at 24,812.60 compared to Thursday’s close of 24,833.60.

“A range-bound movement continued in the market, with the temporary reinstatement of US tariffs by the appeal court influencing investors to stay sidelined,” said Vinod Nair, Head of Research at Geojit Investments Limited. “The global market may contend with macroeconomic concerns as the global trade landscape has yet to see stability, which may navigate a short-term consolidation.”

The sectoral performance was mixed, with the PSU Bank index surging nearly 3 per cent, while the metal and IT sectors dragged the indices lower. The Nifty Metal index declined 1.7 per cent, IT fell 1.2 per cent, and Auto dropped 0.98 per cent. Banking stocks showed resilience, with Nifty Bank gaining 0.37 per cent.

Among individual stocks, CA Eternal emerged as the top gainer, jumping 4.98 per cent to ₹239.75. State Bank of India gained 2.09 per cent to ₹814, while HDFC Bank rose 0.73 per cent to ₹1,941.50. Larsen & Toubro advanced 0.46 per cent to ₹3,672, and Dr Reddy’s Laboratories gained 0.22 per cent to ₹1,251.

On the losing side, Bajaj Auto led the decline, falling 3.10 per cent to ₹8,599. Hindalco dropped 2.51 per cent to ₹633.70, HCL Technologies declined 1.99 per cent to ₹1,631.50, Shriram Finance fell 1.98 per cent to ₹639.35, and Tech Mahindra dropped 1.69 per cent to ₹1,573.

The market breadth remained negative with 2,160 stocks declining, against 1,826 advances on BSE. A total of 4,119 stocks were traded, with 109 hitting 52-week highs and 43 touching 52-week lows. Twelve stocks hit upper circuits, while four were in lower circuits.

Nifty volatile on first day of June series

“The Nifty remained volatile, with a slightly negative bias on the first day of the June series,” said Rupak De, Senior Technical Analyst at LKP Securities. “Immediate support is placed at 24,700; a breach below this level could lead to a decline towards 24,500. On the higher side, 24,800 is likely to act as a crucial resistance.”

Currency markets saw the rupee weakening by 8 paise to 85.52 against the dollar, as the dollar index gained 0.25 per cent to 99.46. “The rupee is expected to stay volatile in the 85.00 to 85.90 range,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

Gold prices declined on dollar strength, with MCX gold hovering around ₹95,200, while Comex gold fell $20 to $3,296. “Gold remains caught between tariff-related uncertainty and dollar-driven volatility,” Trivedi added.

Broader markets showed a mixed performance, with the Nifty Next 50 declining 0.50 per cent to 66,761.30, while the Nifty Midcap 100 fell marginally by 0.06 per cent to 57,420. The India VIX eased over 1 per cent, signaling contained risk sentiment.

“Markets began the June expiry on a muted note and ended marginally lower, continuing the ongoing consolidation phase,” said Ajit Mishra, SVP Research at Religare Broking. “We recommend maintaining a ‘buy on dips’ approach, unless the Nifty decisively breaks below its first line of defence — the 20-day exponential moving average, currently around the 24,600 level.”

Looking ahead, market participants are awaiting key economic triggers, including the US Core PCE Price Index data and the Reserve Bank of India’s monetary policy decision next Friday. “All eyes are now on the upcoming US Core PCE Price Index data and next week’s crucial RBI monetary policy decision,” said analysts, with expectations of a potential rate cut supporting market sentiment despite near-term consolidation.

Published on May 30, 2025