..... . VALI disclosures . .....: 01/06/26, market IN the last hour.

Monday, June 1, 2026

01/06/26, market IN the last hour.

Benchmarks SENSEX and Nifty fell significantly from day's high on June 1 due to various factors, including uncertainty over US-Iran peace deal.

At 2:28 pm, the Sensex was down 473.89 points or 0.63% at 74,301.85, and the Nifty was down 155.40 points or 0.66% at 23,392.35. About 1,459 shares advanced, 2,500 shares declined, and 157 shares were unchanged. Sensex fell 1,100 points from day's high while Nifty was trading below the 23,400-mark. The intraday high of Sensex was 75,367.93 while that of Nifty was 23,733.7.

Tech Mahindra was the top gaining stock in the Nifty 50 index, up 4.2%. Peers Infosys, Tata Consultancy Services, HCL Technologies, and Wipro were up 1.2–4.2%. Amid monthly data releases, select automobile companies were also among the gainers during early trade. Bajaj Auto was up nearly 1% after the company reported a 20% on-year jump in its sales for May to 461,257 units. The company's commercial vehicle sales for the month grew 30% on year. Its peer, Eicher Motors, rose 0.3%.

FMCG companies Hindustan Unilever, Nestle India, and Tata Consumer Products were among the notable laggards, down around 1.1-1.8%. Hindustan Unilever was the worst hit Nifty 50 stock. Max Healthcare Institute was also among the worst-hit stocks in the index, down 1.7%. The stock hit its one-month low at Rs 947 during the session.

In the Nifty 200, Persistent Systems was the highest gainer, up 5.4%. Conversely, GE Vernova T&D India shed over 5% and was the worst-hit stock in the index. In the Nifty 500, PTC Industries rose 14% and was the highest gainer after the company's March quarter consolidated bottom line more than doubled on year to Rs 60 crore. Shares of Jaiprakash Power Ventures shed nearly 13% and were the worst-hit stock in the index. .Key reasons behind market decline

1 Uncertainty over US-Iran peace deal

The approval of US President Donald Trump for a proposed 60-day ceasefire deal is still pending.

According to various media reports, Trump said "most of the agreement" with Tehran was about nuclear issues. Trump also hinted that he was in no hurry to make a deal. In an interview with Fox News, Trump said he was pressing for a deal that would ensure Iran never acquires a nuclear weapon, CNBC reported. Brent crude hovered around $94 a barrel, with investors monitoring developments around US-Iran peace talks.

2. FII selling

Foreign investors offloaded Rs 21,106 crore worth of shares on Friday, provisional data show, as the 50-stock index shed 1.5% to close at a two-week low.

The selling was triggered largely due to MSCI's May index rebalancing, which took effect at around 3:00 pm IST on Friday. The index rejig was expected to lead to about $870 million worth of outflows from Indian equities, per Goldman Sachs.

Friday's session saw turnover at NSE soar to a record Rs 2.87 lakh crore, according to exchange data. Turnover for the Nifty 50 also surpassed Rs 1 lakh crore for the first time, per data compiled by LSEG.

3. Technical reason

Analysts said Nifty has to trade above 23,800 for bullish momentum to return to the markets.

"Nifty continues to trade below its 20-week and 50-week EMAs, highlighting the absence of strong bullish momentum, while support from the broader long-term trendline remains intact. The recent price action suggests continued consolidation, with market participants closely tracking key support and resistance levels for the next directional move.

"On the upside, immediate resistance levels are placed at 23,900 and 24,100. On the downside, support is seen at 23,400 and 23,200. A decisive breakdown below the 23,200 zone could invite fresh selling pressure, whereas sustained trade above 24,100 may improve sentiment and support a recovery move. Considering the current technical structure, traders are advised to remain cautious and follow strict stop-loss strategies amid ongoing market volatility," said Choice Broking.

"Technically, Nifty is likely to witness buying interest on declines, with 23,400 and 23,200 acting as immediate support levels. On the upside, a sustained move above 23,850 could trigger fresh short covering and strengthen the recovery momentum towards the 24,000 mark," said Rajesh Palviya, Head of Research, Axis Direct.

"The current market setup favours a sell-on-rise approach with stock-specific opportunities expected to outperform until directionality emerges," said Dhupesh Dhameja, derivatives research analyst at SAMCO Securities.

4. India VIX rises

India VIX, the market fear gauge, was up 1.5% at 16.42 on June 1. It had rebounded sharply by 8.03% to 16.18 on Friday after witnessing a correction over the previous several sessions. The rise in volatility signals increasing discomfort among bulls. Analysts believe that for bullish sentiment to strengthen meaningfully, the VIX needs to sustain below the 15 level, said a brokerage.

Report by J. Jagannath of Network18

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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 IN the last hour.

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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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