Why BSE Sensex and Nifty50 Are Falling Today? Global Cues, IT Drag, and What Comes Next

The Indian stock market opened in the red on June 2, reflecting broader global uncertainty and risk aversion. By mid-day, both the Sensex and Nifty extended losses, dragged down by weak cues from international markets, profit booking in IT stocks, and mounting geopolitical tensions.

At the time of writing, the Sensex was trading at 80,097.18, down 353.83 points or 0.43%, while the Nifty hovered at 24,650.55, lower by 100.25 points or 0.41%.

Key Losers and Gainers
Early morning trade saw mixed performance across sectors. On the Nifty, top gainers included Apollo Hospitals, Hindustan Unilever (HUL), SBI Life Insurance, Tata Consumer, and Cipla. However, the benchmark was dragged down by heavyweight losers such as Hindalco, Tata Steel, L&T, HCL Technologies, and Reliance Industries.

Amid mixed global cues, Indian stock markets opened slightly lower on June 2.

The Sensex fell by 601.24 points, or 0.74%, to 80,849.77, while the Nifty slipped 169.30 points, or 0.68%, to 24,581.40. Market breadth was negative, with 1,197 stocks advancing, 1,526 declining, and 200 remaining unchanged.

Why Is the Stock Market Down?

1. US-China Trade War Back in Focus
A major source of market anxiety stems from renewed trade tensions between the US and China. On May 30, US President Donald Trump announced plans to double tariffs on steel and aluminium imports to 50%, up from the current 25%, with effect from June 4. The decision affects an estimated $4.56 billion worth of Indian goods, increasing fears of a prolonged trade war and economic slowdown.

“Indian equity markets are witnessing pressure in early morning trades, all because of the uncertainty with regards to the lingering tariff war,” said Sugandha Sachdeva, Founder of SS WealthStreet.

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2. Geopolitical Concerns Escalate
Further darkening the mood, tensions between Russia and Ukraine have escalated, adding another layer of uncertainty. These concerns are prompting global investors to adopt a "risk-off" strategy, pulling funds out of equities and shifting towards safer assets.

IT Sector Under Pressure
The Nifty IT index fell over 1%, trading around 36,948, extending its decline for a second consecutive session. IT stocks, which saw a 4.27% surge in May, are now facing profit booking at higher levels.

“Majorly because of the weak global cues, IT stocks are also witnessing pressure. After the sharp rise... the IT index is witnessing some pressure and profit booking at higher levels,” added Sachdeva.

Key Levels To Watch Today 
According to Sachdeva, markets are struggling to sustain upward momentum. The 24,400 level on the Nifty is a strong support, while the 25,100–25,200 range is emerging as a tough resistance zone.

 

Outlook: Bounce Possible, But Risks Remain
While the markets may see a short-term bounce from support levels, the overall sentiment remains fragile, closely tied to geopolitical developments and trade policies.
As the world watches for the next move in the US-China spat and Ukraine-Russia standoff, Indian equities may remain volatile in the near term.