MarketSmith Analyst Raja Venkatraman Recommends Four Stocks for June 2

Indian Stock Market Extends Losing Streak to Fourth Consecutive Session

The Indian benchmark indices, Sensex and Nifty 50, continued their downward trend on Monday, extending their losing streak to a fourth consecutive session. 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.

The 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.

Gift Nifty Live Chart Signals Negative Start

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The Gift Nifty Live Chart showed a negative start for the Indian stock market today, trading around the 23,243 level, a discount of 219 points from the Nifty futures' previous close of 23,462. According to Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm, Indian equity markets are expected to open with a cautious undertone as persistent geopolitical uncertainty continues to cloud investor sentiment.

Prolonged US-Iran Standoff and Elevated Crude Oil Prices Weigh on Market

The prolonged US-Iran standoff and the rebound in crude oil prices 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. 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 and Foreign Fund Outflows

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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.

Stocks to Buy Today

Regarding stocks to buy today, Raja Venkatraman, Co-founder of NeoTrader, and stock research platform MarketSmith India, recommended buying the following four shares:

These stocks have been recommended due to their potential for growth and stability. Saregama India Ltd has made a double-bottom recovery and has taken steady support at the Tenkan Sen and Kijun Sen. Tech Mahindra Ltd has seen a strong revival in certain IT names and has a potential upward drift. National Aluminium Co. Ltd has a consolidation base breakout and is a beneficiary of infrastructure growth. Happy Forgings Ltd has a strong presence in precision forged components and has a diversified customer base.

Investor Sentiment Remains Cautious

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.