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Indian stock markets displayed notable resilience on Monday, recovering strongly from early losses to close just marginally lower. The Sensex ended the session at 81,374, down 77 points or 0.09 per cent, but this masked a sharp intraday rebound of 719 points from the day’s low of 80,654.

The Nifty also trimmed losses to settle at 24,717, slipping 34 points or 0.14 per cent, after bouncing back from an intraday low of 24,526.

Investor sentiment was initially dampened after US President Donald Trump announced a proposed increase in tariffs on steel imports, from 25 per cent to 50 per cent, effective June 4. This development, combined with rising tensions between Russia and Ukraine, volatile foreign fund flows, and caution ahead of the RBI’s policy decision, contributed to a subdued market mood in early trade.

Despite the weak start, buying in select heavyweight stocks helped curb overall losses. Gains were seen in Adani Ports, Mahindra & Mahindra, Zomato (Eternal), PowerGrid, Hindustan Unilever, Bajaj Finserv, ITC, ICICI Bank, Asian Paints, and Nestle India, with advances ranging from 0.4 per cent to 2 per cent.

Broader Market Update

In the broader market, mid- and small-cap stocks outperformed. The Nifty MidCap index rose 0.62 per cent, while the Nifty SmallCap gained 1.1 per cent.

Sectorial Update

Sector-wise, Nifty IT and Nifty Metal were the worst performers, each declining 0.7 per cent, largely on concerns over US trade policies. In contrast, Nifty Realty and Nifty PSU Bank were the top gainers, both rising more than 2 per cent.

“The domestic market continued its consolidation phase for the third consecutive week, influenced by renewed concerns over a potential tariff war and escalating geopolitical tensions between Russia and Ukraine,” said Vinod Nair, Head of Research at Geojit Financial Services.

"While global uncertainties have led investors to adopt a risk-averse approach, the Indian market has demonstrated resilience, underpinned by robust institutional inflows and selective sectoral strength like FMCG, real estate, and financial stocks,” Nair added.

He noted that, under current conditions, investors are leaning toward a cautious, short-term strategy with a preference for domestically focused and interest-sensitive sectors.