Indian Stock Market Continues Downward Trend Amid Global Uncertainty

The Indian stock market continued its downward trend on Monday, with the Sensex plummeting 2.2k points in four consecutive sessions due to ongoing uncertainty in the Gulf region.

Oil Prices Surge, Weigh on Investor Sentiment

As the West Asia peace talks showed no meaningful progress and fresh reports of flare-ups between the US and Iran emerged, crude oil prices jumped, weighing heavily on investor sentiment on Dalal Street. The Brent crude price spiked over 5% to trade near the $96/barrel level in late trades.

The rupee showed signs of stabilisation, closing 1 paise stronger to the dollar at 94.99, but weakened to trade at 95.17/$ in late non-deliverable market trades.

Foreign Funds Continue to Sell Indian Stocks

Foreign funds continued to sell Indian stocks, with a net outflow of over Rs 3,900 crore on Monday, taking the total net outflow this year to over Rs 2.5-lakh-crore mark, data from BSE and NSDL showed.

Market Impact and Details

• The Sensex slid 1,100 points from the day’s high to close at 74,267 points, down 508 points on the day.
• During the four consecutive sessions, the index has lost 2,222 points or almost 3%.
• The total net selling of stocks by foreign funds during the whole of 2025 was nearly Rs 1.7 lakh crore.

Key Takeaways

• The domestic market is expected to remain range-bound with a marginal negative bias in the near term amid persistent foreign portfolio investor (FPI) selling and ongoing uncertainty around global macro developments.
• Focus is likely to remain on stock-specific opportunities in the midcap space, particularly in the textile sector following the government’s cotton import duty waiver.
• The RBI’s upcoming policy meeting on June 5 will be a key monitorable for investors.

FAQs

What is the current market capitalisation of the BSE?

The BSE’s market capitalisation is now at Rs 460.7 lakh crore, data showed.

What is the current price of Brent crude?

The Brent crude price spiked over 5% to trade near the $96/barrel level in late trades.

What is the current rupee-dollar exchange rate?

The rupee showed signs of stabilisation, closing 1 paise stronger to the dollar at 94.99, but weakened to trade at 95.17/$ in late non-deliverable market trades.

Conclusion

The Indian stock market continues to face uncertainty due to ongoing global macro developments and persistent foreign portfolio investor (FPI) selling. However, with the earnings season largely over and India Inc reporting stronger earnings growth, focus is likely to remain on stock-specific opportunities in the midcap space. Investors are advised to monitor the RBI’s upcoming policy meeting on June 5 and the government’s cotton import duty waiver for the textile sector.