Mumbai, June 2, 2025 — India's share market recorded a sharp decline today as volatility in the world economy took a heavy toll on investor sentiment. The benchmark indices Nifty 50 and BSE Sensex ended the day in red, a reflection of caution in the wake of mixed signals from the foreign bourses and expectations of forthcoming policy statements.
Market Overview: Nifty 50 and Sensex Drop
The Nifty 50 index closed at 24,561.05, down 189.66 points (approximately 0.77%), and the BSE Sensex closed at 81,451, down 182 points (approximately 0.22%). There are several reasons, as seen by market analysts, responsible for the decline, some of which include increasing inflation worries in the US, unstable crude oil prices, and uncertainty over global trade talks.
Investors remained cautious ahead of key domestic economic indicators announcements later this week, including inflation data and manufacturing production reports that can influence Reserve Bank of India monetary policy decisions in the upcoming times.
➡️ Read full market update on LiveMint
Expert Stock Picks and Investment Insights
Whereas the market downturn, some of the industries kept their resilience intact. Prabhudas Lilladher Chief Investment Officer Vaishali Parekh recommended to investors to seek to buy stocks in companies like Welspun Corp, HCC, and Dabur India, based on sound fundamentals and growth potential.
Parekh noted that infrastructure and consumer staples had the potential to perform better in the medium term, backed by government spending and steady demand.
➡️ Vaishali Parekh's stock recommendations on LiveMint
Future: Volatility as an Opportunity for Long-Term Investors
Market analysts believe that while short-term volatility may reign supreme, long-term investors should view the current corrections as an opportunity to build positions in good quality companies with healthy fundamentals. The growth trajectory of the Indian economy is strong, driven by domestic consumption, growth in infrastructure, and improving corporate earnings.
Moreover, foreign investors are monitoring India as a relatively stable emerging market, especially in view of persistent geopolitical uncertainty elsewhere.
Broader Economic Context
New manufacturing and export competitiveness-enhancing reforms are expected to be announced by the Indian government in the coming months. These, combined with supportive domestic demand, will likely support the growth of markets in the medium to long term.
While, external risks like increased crude prices and foreign inflationary pressures will remain something to keep an eye on.
The following external sources have been used:
- ✅ LiveMint: Nifty 50 and Sensex Market Update June 2, 2025
- ✅ LiveMint: Stock Picks by Vaishali Parekh
- ✅ The Economic Times: Stocks to Buy Today June 2, 2025