Stock Market Declines for the Third Consecutive Session

Indian stock markets extended losses for the third day on June 3, 2025. Investor sentiment remained weak ahead of key macroeconomic data and global uncertainty. The BSE Sensex dropped by 350.15 points, ending the session at 81,735.49, while the NSE Nifty 50 closed below the crucial 24,650 mark, settling at 24,635.20, down 95.30 points.

Auto and Banking Stocks Weigh Down Indices

Major drags on the benchmark indices came from the auto and banking sectors. Shares of leading auto players like Tata Motors, Maruti Suzuki, and Mahindra & Mahindra saw declines of 1–2%. Weak monthly sales data from May and concerns over rising input costs impacted auto stock performance.

Banking stocks also faced pressure. HDFC Bank, ICICI Bank, and Axis Bank recorded losses of up to 1.5%. Investors booked profits amid valuation concerns and caution ahead of the upcoming RBI policy review.

Broader Market Also in the Red

Benchmark indices were reflected in the broader market. The BSE Smallcap and Midcap indices saw declines of 0.3% and 0.5%, respectively, at the end. With more declining stocks than advancing ones, the market’s breadth remained negative.

Sectors such as realty, FMCG, and energy also saw mild losses. Only a few sectors like IT and pharma managed to end flat or with marginal gains.

Volatility Index Jumps; Traders Turn Cautious

India VIX, the volatility index, surged by 3.5% to 13.80, indicating rising nervousness among traders. With the RBI’s Monetary Policy Committee (MPC) meeting scheduled later this week, investors chose to remain cautious.

Concerns over persistent inflation, crude oil fluctuations, and foreign capital outflows continued to weigh on the sentiment. Analysts advised investors to remain selective and avoid aggressive buying.

Global Cues Add Pressure on Domestic Market

Weak global cues further dented sentiment. Asian markets ended mixed, while European stocks opened flat to negative. Investors globally are watching for signals from the upcoming US Federal Reserve meeting and non-farm payroll data, which could influence rate decisions.

Expectations of hard inflation were indicated by the stability of US bond yields. This pattern kept foreign investors out of Indian stocks, which resulted in ongoing FII withdrawals.

Key Losers and Gainers of the Day

Among the top Nifty losers were:

• Tata Motors (-2.10%)
  
• HDFC Bank (-1.65%)
  
• Maruti Suzuki (-1.45%)
  
• Axis Bank (-1.30%)
  
• L&T (-1.20%)
  

On the other hand, a few stocks bucked the downtrend:

• Sun Pharma (+0.90%)
  
• Infosys (+0.65%)
  
• TCS (+0.55%)
  

Defensive buying in IT and pharma limited overall market losses to an extent.

Rupee Weakens Against US Dollar

The Indian Rupee also depreciated amid dollar strength and higher crude oil prices. The Rupee ended at ₹83.57 per dollar, down 11 paise from the previous close. Currency markets remained under pressure due to global risk aversion and a stronger greenback.

Outlook for the Week Ahead

Markets may remain volatile as investors await:

• RBI’s interest rate decision
  
• India’s Services PMI data
  
• US job data and Fed commentary
  

Analysts believe that Nifty might see support near 24,500, while resistance lies around 24,900. A clear direction could emerge post the RBI outcome on June 6, 2025.

Expert Take on Current Market Mood

Market analysts advise investors to hold off on taking on new leverage positions until more information becomes available. “This week, volatility is predicted to remain high. For the time being, defensive industries and high-quality large-cap stocks are safer investments, according to Rajeev Mehta, senior analyst at

Meanwhile, long-term investors may see this correction as a buying opportunity, especially in IT, pharma, and infrastructure.

Conclusion

With three straight sessions of losses, Indian markets reflect global uncertainty and domestic concerns. Auto and bank stocks remain under pressure, and all eyes are now on the RBI’s next move. Until then, volatility is likely to persist, and cautious trading may dominate the street.

Ankur Singh Aswal

I am a digital marketing executive as well as content writer in the  stock market and crypto related blogs. My goal is to provide simple, interesting and reliable information to readers through my articles so that they always stay updated with the world of stock market and crypto.

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