Stocks to buy on 2 June: Indian benchmark indices Sensex and Nifty 50 extended their losing streak to a fourth consecutive session on Monday, weighed down by selling pressure in FMCG, financial and automobile stocks amid elevated crude oil prices and renewed geopolitical tensions in West Asia.
The BSE Sensex fell 508.40 points, or 0.68%, to close at 74,267.34, after swinging over 1,160 points during the session. The index touched an intraday high of 75,367.93 and a low of 74,203.68. Meanwhile, the Nifty 50 declined 165.15 points, or 0.70%, to settle at 23,382.60.
Broader markets also ended lower, with the BSE MidCap Select index dropping 1.44% and the BSE SmallCap Select index slipping 0.72%.
Among sectoral indices, Power led the losses, down 2.90%, followed by Capital Goods (2.44%), Utilities (2.12%), Industrials (2.11%), Realty (2.03%), and FMCG (2.02%). On the other hand, Information Technology, Energy, Metal and Focused IT stocks bucked the trend and closed in positive territory.
What Gift Nifty live chart signals?
The Gift Nifty Live Chart shows a negative start for the Indian stock market today. By 7:30 AM, the Gift Nifty was trading around the 23,243 level, a discount of 219 points from the Nifty futures’ previous close of 23,462.
Decoding the impact of Gift Nifty live chart and other triggers on Dalal Street, Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm, said that Indian equity markets are expected to open with a cautious undertone as persistent geopolitical uncertainty continues to cloud investor sentiment. The US–Iran situation remains unresolved, with diplomatic efforts encountering repeated setbacks and no definitive breakthrough yet emerging. The prolonged tensions in the Middle East have kept global risk appetite restrained, prompting investors to adopt a more defensive stance amid concerns over regional stability and the broader implications for energy markets.
Crude oil prices have rebounded above the $90 per barrel mark and are currently trading in the $91–93 range. Following the sharp correction witnessed in recent weeks, the recovery in oil prices has once again brought inflationary and macroeconomic concerns into focus. For India, elevated energy prices remain a key risk, given their potential impact on import costs, inflation expectations and corporate profitability, particularly across oil-sensitive sectors.
Institutional flow trends also remain a key area of focus. Foreign Institutional Investors (FIIs) have continued to maintain a net selling stance in recent sessions, with persistent outflows acting as a significant headwind for domestic equities and limiting stronger upside momentum. However, robust participation from Domestic Institutional Investors (DIIs) continues to provide an important source of support, helping absorb a portion of the foreign selling pressure and contributing to market stability.
Overall, investor sentiment remains cautious and highly sensitive to geopolitical developments. The prolonged US–Iran standoff, the rebound in crude oil prices, and continued foreign fund outflows continue to shape the near-term market narrative. While energy prices remain below their recent peaks, any further escalation in regional tensions or sustained foreign selling could weigh on risk appetite and increase downside risks. Conversely, meaningful progress on the diplomatic front would likely improve sentiment, support a recovery in risk assets and provide greater visibility for markets navigating an uncertain global backdrop.
Stocks to buy today
Regarding stocks to buy today — Raja Venkatraman is Co-founder of NeoTrader, and stock research platform MarketSmith India, recommended buying these four shares – Saregama India Ltd, Tech Mahindra Ltd, National Aluminium Co. Ltd, and Happy Forgings Ltd.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
Saregama India Ltd (current market price ₹459.75)
Why it’s recommended: Saregama India Ltd is India’s oldest music label and operates under the RP-Sanjiv Goenka (RPSG) Group; it owns the largest music archive in India. The stock has declined by more than 70% from its highs, has made a double-bottom recovery in the last few weeks, and has taken steady support at the Tenkan Sen and Kijun Sen. As steady volume builds, we can look at how this counter is able to generate steady upward momentum. The reaction to every swing pullback augurs well for going long.
Technical analysis: Support at ₹390, resistance at ₹600.
Risk factors: Notably high content cost inflation, aggressive competition from domestic and global music players.
Target price: ₹505 (2 Months)
Tech Mahindra Ltd (current market price ₹1,543.20)
Why it’s recommended: Tech Mahindra Ltd is a leading Indian multinational IT services company, specialising in digital transformation, telecommunications networks, AI, and enterprise IT services for clients globally. After a series of range-bound action, the strong revival seen in certain IT names has caught attention. The long body candle now thrusting above the recent range, alongside a Kumo twist on the Daily chart, indicates potential upward drift. Look to go long.
Technical analysis: Support at ₹1,400, resistance at ₹1,800.
Risk factors: Raw material inflation driven by crude oil, and rural demand slowdowns. Investors should closely monitor commodity cycles and market share retention.
Target price: ₹1,700 (2 Months)
Two stock recommendations by MarketSmith India
Buy: National Aluminium Co. Ltd (current price: ₹436)
Why it’s recommended: Integrated aluminium producer, captive bauxite reserves, captive power generation support, strong government-owned enterprise, low-cost production advantage, beneficiary of infrastructure growth, rising demand for aluminium, strong export opportunities, healthy cash position, attractive dividend track record, expansion opportunities in downstream products, beneficiary of energy transition themes, strategic importance in metal sector, strong resource security, and improving long-term demand outlook.
Key metrics: P/E: 13.40, 52-week high: ₹445.15, volume: ₹417.19
Technical analysis: Consolidation base breakout
Risk factors: Cyclical aluminium industry, aluminium price volatility, dependence on global commodity markets, power and energy cost risks, government ownership-related constraints, environmental and mining regulations, export demand fluctuations, margin pressure during metal downturns, currency fluctuation impact, project execution delays, global oversupply risk, slowdown in infrastructure spending, geopolitical risks affecting commodities, high dependence on commodity cycle, and earnings volatility due to metal prices.
Target price: ₹412 in two to three months
Buy: Happy Forgings Ltd (current price: ₹1,420)
Why it’s recommended: Strong presence in precision forged components, diversified customer base, exposure to automotive and industrial sectors, strong relationships with leading OEMs, focus on high-value products, healthy margin profile, consistent revenue growth potential, strong manufacturing capabilities, export growth opportunities, beneficiary of commercial vehicle demand, increasing content per vehicle trend, capacity expansion supporting growth, strong return ratios, opportunity from China+1 theme, and well-positioned in niche forging segment.
Key metrics: P/E:43.40, 52-week high: ₹1,490.00, volume: ₹27.77 crore
Technical analysis: Consolidation base breakout
Risk factors: Dependence on auto industry cycle, slowdown in commercial vehicle demand, customer concentration risk, raw material price volatility, margin pressure from competitive pricing, execution risk in capacity expansion, export demand fluctuations, economic slowdown affecting industrial demand, working capital requirement risk, competition from domestic and global players, dependence on key OEM customers, supply chain disruption risks, technology upgradation requirements, forex fluctuation impact, and valuation risk during cyclical downturns.
Target price: ₹1,580 in two to three months
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
