..... . VALI disclosures . .....: 01/06/26, Market News for Today

Monday, June 1, 2026

01/06/26, Market News for Today

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a muted note on Monday, following mixed cues from global markets, as investors remain cautious due to the uncertainties over the US-Iran peace talks.

Asian markets traded mixed, while the US stock market ended at record closing high last week, with the S&P 500 registering its ninth consecutive weekly gain, its longest winning streak since December 2023.

This week, investors will watch out for key stock market triggers, including the RBI monetary policy, developments in US-Iran peace talks, movement in crude oil prices, shipping activity through the Strait of Hormuz, trends in FII flow, and other key domestic and global macroeconomic data releases.

On Friday, the Indian stock market ended sharply lower after sudden dip in the fag end of the session.

The Sensex crashed 1,092.06 points, or 1.44%, to close at 74,775.74, while the Nifty 50 settled 359.40 points, or 1.50%, lower at 23,547.75.

"Benchmark indices are likely to remain range-bound, although select midcap and smallcap stocks could continue to outperform on the back of healthy earnings momentum and strong domestic liquidity. However, investors are expected to remain cautious as mixed signals from the ongoing US-Iran talks and recurring geopolitical flare-ups continue to keep volatility elevated across global financial markets," said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Monday amid uncertainty around US-Iran peace deal. Japan's Nikkei 225 gained 0.78%, while the Topix fell 0.3%. South Korea's Kospi jumped 2.40%, while the Kosdaq declined 1.58%. Hong Kong's Hang Seng index futures indicated a lower opening. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.2%.

Gift Nifty Today

Gift Nifty was trading around 23,702 level, a discount of nearly 46 points from the Nifty futures' previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market indices hit record closing highs on Friday and posted weekly and monthly gains, led by a rally in tech shares.

The Dow Jones Industrial Average gained 363.37 points, or 0.72%, to 51,032.34, while the S&P 500 rose 16.44 points, or 0.22%, to 7,580.07. The Nasdaq Composite closed 55.15 points, or 0.21%, higher 26,972.62.

For the week, the S&P 500 gained 1.43%, the Nasdaq rallied 2.39%, and the Dow advanced 0.9%. For the month, the S&P 500 jumped 5.15%, the Nasdaq surged 8.36%, and the Dow climbed 2.78%.

Nvidia stock price fell 1.45%, Microsoft shares rallied 5.45%, Dell shares jumped 32.8%, Apple stock price eased 0.14%, Amazon shares declined 1.23%, and Alphabet share price dropped 2.5%. Peers Hewlett Packard Enterprise shares spiked 12.6%, Super Micro Computer share price rallied 11.6% and Tesla stock price fell 1.43%.

US-Iran War

The US and Ira traded messages over the weekend seeking changes to a draft agreement that would extend a ceasefire and open the Strait of Hormuz, but it was unclear if the sides were making much progress, Bloomberg reported. Meanwhile, Israel expanded its ground assault in Lebanon in the battle with the Iranian-backed Hezbollah militant group.

Japan PMI

Japan's manufacturing sector expanded in May at a slightly slower pace. The final S&P Global Japan Manufacturing Purchasing Managers' Index (PMI) stood at 54.5 in May, down from April's more than four-year high of 55.1 and matched the flash reading.

India-US Trade Talks

India and US are all set to begin trade talks in Delhi from June 1 to June 4, as both countries look to finalise the interim trade agreement and take forward negotiations. Last week, US Ambassador to India Sergio Gor said that the bilateral negotiations had reached their final stretch.

FPI Outflows

Foreign Portfolio Investors (FPI) net sold Indian stocks worth ₹32,963 crore in the month of May, NSDL data showed. The total FPI outflows in the five months of 2026 reached ₹2,24,932 crore.

Crude Oil Prices

Crude oil prices rallied after Israel ordered troops to move further into Lebanon in the battle with the Iranian-backed Hezbollah militant group, Reuters reported. US crude futures rose 2.71% to $89.73 a barrel, while Brent futures gained 2.37% to $93.28 a barrel.

Dollar

The US dollar held steady as markets awaited the results of US-Iran peace talks. The dollar index of the greenback against a basket of currencies including the yen and the euro, was flat at 99.00, after last week's drop of 0.4%. The euro fell 0.08% to $1.165, while Sterling slipped 0.07% to $1.3449. The yen weakened 0.08% to 159.41 per dollar.

Gold Rate Today

Gold prices traded flat, having found little support as a safe haven or as a hedge against inflation. Spot gold price was little changed at $4,535 an ounce.

(Report by Mint with inputs from Agencies)

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Monday, June 1, 2026

01/06/26, Market News for Today

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Today's

01/06/26, Gold prices on the first day of June continued to trade steady with a negative bias. According to Goodreturns.in at the time of writing at around 9:31 am, 24 and 22 carat gold were down by ₹10 each per 10 gm and quoted at ₹1,57,030 and ₹1,43,940 per 10 gm, respectively.

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