Closing Bell: Sensex Falls 304 Points, Nifty 50 Ends Below 23,500; TCS Slumps 8.39% as Nifty IT Crashes 5.57%

Market Update at 04:00 PM: Indian benchmark indices ended lower on Wednesday, June 3, reversing the previous session's gains as rising crude oil prices, weakness in information technology stocks and concerns over India's lack of a clear artificial intelligence play weighed on investor sentiment.

The Nifty 50 opened 67 points lower and slipped to an Intraday low of 23,151.50. However, the index staged a strong recovery during the session, rebounding more than 250 points from the day's low and briefly moving above the 23,400 mark. Despite the recovery, the benchmark settled in negative territory.

At the closing bell, the Nifty 50 ended 77.95 points, or 0.33 per cent, lower at 23,405.60. The BSE Sensex declined 303.67 points, or 0.41 per cent, to close at 74,346.17.

Banking stocks outperformed the broader market. The Bank Nifty recovered sharply from its intraday low and closed 0.88 per cent higher, extending gains for a second consecutive session. Earlier in the day, the banking index had fallen as much as 1 per cent. Meanwhile, the India VIX, often referred to as the market's fear gauge, jumped 6 per cent.

Global oil prices remained a key concern for investors. Brent crude futures climbed towards USD 97 per barrel, recording a third straight session of gains. Persistent uncertainty surrounding U.S.-Iran peace negotiations and renewed tensions in the Middle East continued to support a geopolitical risk premium in oil markets.

Sectorally, six of the 11 major sectoral indices ended in positive territory. However, weakness in technology stocks dragged the broader market lower. The Nifty Midcap 100 index declined 0.42 per cent, while the Nifty Smallcap 100 index fell 0.11 per cent.

The Nifty PSU Bank index emerged as the best-performing sector, advancing 1.7 per cent with 11 of its 12 constituent stocks ending higher. The index extended gains from the previous session.

On the other hand, the Nifty IT index was the worst-performing sector, plunging 5.57 per cent and extending losses for a third consecutive trading session. The decline marked the sector's steepest fall since February 2026.

Among IT stocks, Tata Consultancy Services (TCS) tumbled 8.39 per cent to lead the losses. Infosys dropped 3.79 per cent, while Wipro fell 2.74 per cent amid a broad-based sell-off across the technology sector.

Among individual stocks, IndusInd Bank declined 1.38 per cent following reports of a fresh whistleblower complaint seeking an investigation into alleged insider trading, governance issues and shortcomings in foreign exchange and audit reviews.

TCS shares also remained under pressure, falling 8.39 per cent amid the sharp correction in the IT sector and broader market weakness.

Banking stocks provided support to the benchmark index during the session. HDFC Bank contributed 17.99 points to the Nifty 50, while ICICI Bank added 24 points and State Bank of India contributed 12.41 points.

However, heavy selling in technology stocks offset these gains. TCS was the biggest drag on the index, shaving off 45.64 points. Infosys reduced the index by 36.82 points, while HCL Technologies erased 14.85 points.

Despite the benchmark indices ending lower, market breadth remained tilted towards advancing shares. Out of 3,402 stocks traded on the National Stock Exchange, 1,379 advanced, 1,915 declined and 108 remained unchanged.

A total of 81 stocks touched their 52-week highs, while 61 stocks hit their 52-week lows. Additionally, 106 stocks were locked in their Upper Circuits, whereas 111 stocks were locked in Lower Circuits.

Market Update at 2:29 PM: Indian equity benchmarks remained under pressure on Wednesday, although they recovered from their day's lows as investors continued to monitor developments surrounding the ongoing U.S.-Iran peace talks. Uncertainty over geopolitical developments and a sharp sell-off in information technology stocks weighed on overall market sentiment.

As of 2:00 PM, the Nifty 50 was trading 113.50 points, or 0.48 per cent lower, at 23,370.55. The BSE Sensex declined 432.79 points, or 0.58 per cent, to 74,217.05.

The weakness in the benchmark indices was largely driven by losses in technology shares. Among the Nifty 50 constituents, Tata Consultancy Services (TCS), HCL Technologies, and Tech Mahindra emerged as the top laggards, dragging the broader market lower.

Selling pressure was also visible across the broader market segments. The Nifty MidCap index traded 1.54 per cent lower, while the Nifty SmallCap index declined 1.37 per cent, indicating a broader risk-off sentiment among investors.

On the sectoral front, the Nifty IT index was the worst-performing sector, plunging more than 5 per cent. The sharp decline reflected concerns over the outlook for technology stocks amid global uncertainties. The Nifty Realty and Nifty PSU Bank indices also underperformed, adding to the market's weakness.

In contrast, the Nifty Metal index showed relative resilience and emerged as the best-performing sector during the session, recording the smallest decline among major sectoral indices.

Market participants are also keeping a close watch on domestic developments. Investors will focus on the Reserve Bank of India's Monetary Policy Committee (MPC) meeting, which begins on Wednesday and will continue for three days. The policy outcome is expected to provide further direction to the markets, particularly regarding interest rate expectations and the central bank's assesSMEnt of economic conditions.

Market Update at 12:24 PM: Indian equity benchmarks traded sharply lower on Wednesday, with the Nifty 50 and Sensex extending losses amid weakness in information technology stocks and growing concerns over the geopolitical situation in West Asia.

At around 12:00 PM, the Nifty 50 was down 281.60 points, or 1.20 per cent, at 23,198.20. The Sensex declined 1,033.47 points, or 1.38 per cent, to 73,616.37.

The sell-off was led by IT stocks, with Tata Consultancy Services, HCL Technologies and Tech Mahindra emerging as the Top Losers on the Nifty 50 index. The Nifty IT index was the worst-performing sector, falling more than 5 per cent during the session.

Broader markets also remained under pressure. The Nifty MidCap index was trading 1.54 per cent lower, while the Nifty SmallCap index declined 1.37 per cent.

Among sectoral indices, the Nifty Realty and Nifty PSU Bank indices were also among the major laggards. In contrast, the Nifty Metal index outperformed the broader market and recorded the smallest decline among key sectors.

Investor sentiment remained cautious as uncertainty surrounding peace negotiations between the U.S. and Iran continued to weigh on global markets. Concerns intensified after U.S. Secretary of State Marco Rubio told the Senate Foreign Relations Committee that Iran had mined a large section of the Strait of Hormuz and fired at commercial ships.

The remarks raised fears that a peace agreement between the two countries may still be distant, increasing the possibility of a prolonged conflict in West Asia. Any escalation in the region could have implications for global trade routes, energy prices and overall market sentiment.

On the domestic front, investors are closely monitoring the Reserve Bank of India's Monetary Policy Committee meeting, which is scheduled to begin on Wednesday. Market participants will be looking for cues on interest rates and the central bank's outlook on inflation and economic growth.

Market Update at 09:35 AM: Indian benchmark equity indices opened lower on Wednesday as investor sentiment turned cautious amid growing uncertainty surrounding peace negotiations between the U.S. and Iran.

At around 9:18 AM, the Nifty 50 declined 178.25 points, or 0.76 per cent, to 23,307.40, while the Sensex dropped 707.07 points, or 0.95 per cent, to 73,958.38.

Market participants remained wary as geopolitical tensions in West Asia continued to weigh on global risk appetite. Concerns intensified after U.S. Secretary of State Marco Rubio, during his first appearance before the Senate Foreign Relations Committee, stated that Iran had mined a large section of the Strait of Hormuz and had fired at commercial ships operating in the region.

The remarks reignited fears that a diplomatic resolution between the U.S. and Iran may still be some distance away. Investors worry that a prolonged conflict could disrupt global energy supplies and create further uncertainty in international financial markets.

Back home, traders are also closely monitoring the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, which begins its three-day deliberations on Wednesday. The central bank’s policy decision will be watched for signals on interest rates, inflation outlook, and economic growth prospects.

Pre-Market Update at 7:45 AM: Indian benchmark indices Sensex and Nifty 50 are expected to open on a weak note on Wednesday, June 3, amid mixed global cues and rising geopolitical tensions in the Middle East. Investor sentiment remains cautious as the renewed conflict between the U.S. and Iran has reduced hopes of a near-term ceasefire, while foreign institutional selling continues to weigh on market mood.

Gift Nifty was trading around 23,468, indicating a softer start for domestic equities despite positive closing trends on Wall Street. Asian markets traded mixed, with Japan's benchmark index touching a record high, while U.S. equities ended marginally higher overnight.

Geopolitical developments remain one of the biggest factors influencing market sentiment. The U.S. military said it intercepted several Iranian missile and drone attacks in the Gulf region and conducted defensive strikes on Iran's Qeshm Island. At the same time, U.S. Central Command dismissed Iranian claims that its forces had targeted major American military installations in the region. The escalation has increased uncertainty across global financial markets and supported higher crude oil prices.

The latest U.S. Job Openings and Labor Turnover Survey (JOLTS) showed a sharp increase in job vacancies during April. Open positions rose by 731,000 to 7.618 million, marking the largest monthly increase in five years and the highest level since May 2024. The stronger labour market data has reinforced expectations that the U.S. Federal Reserve could maintain higher interest rates for a longer period.

Crude oil prices moved higher as geopolitical tensions reduced expectations of any immediate improvement in U.S.-Iran relations. Brent crude advanced 1.13 per cent to USD 97.08 per barrel, while West Texas Intermediate (WTI) crude gained 1.24 per cent to USD 94.92 per barrel. Rising oil prices are closely watched by Indian investors due to their potential impact on inflation and corporate profitability.

Gold prices eased after stronger U.S. economic data reduced expectations of near-term monetary easing. Spot gold declined 0.4 per cent to USD 4,469.13 per ounce, while silver fell 0.9 per cent to USD 74.44 per ounce.

The U.S. dollar traded within a narrow range, with the Dollar Index edging up 0.046 per cent to 99.216. Meanwhile, the Japanese yen remained under pressure, hovering close to the 160-per-dollar level.

Derivatives positioning suggests a largely range-bound market for the near term. The Put-Call Ratio (PCR) stands at 1.06. On the put side, the highest open interest addition was seen at the 23,300 strike, making it a crucial support zone. On the call side, significant open interest concentration remains at the 24,000 strike, indicating a strong resistance level for Nifty 50.

Immediate resistance for Nifty 50 is placed at 23,641, coinciding with the 8-day exponential moving average (EMA). The next hurdle is near 23,689, which aligns with the 50-day moving average (DMA). A sustained move above these levels could push the index towards 23,769, near the 20-day moving average. On the downside, 23,380 remains the first important support, followed by 23,229. The market is expected to remain range-bound unless it breaks above 23,689 or falls below 23,380.

Several stocks are expected to remain in focus due to corporate developments. Infosys expanded its partnership with DNB Bank ASA to strengthen financial-crime management operations. Vedanta clarified that Enforcement Directorate officials visited certain offices of Vedanta and Hindustan Zinc, adding that it is fully cooperating with the ongoing proceedings. InterGlobe Aviation announced the discontinuation of Manchester flights from August 31 and plans to return one Boeing 787-9 Dreamliner amid operational and cost-related challenges.

Canara Bank approved fundraising of up to Rs 8,500 crore through bond issuances during FY27. Power Finance Corporation said the Registrar of Companies struck off subsidiary PFC Projects, while three wholly owned subsidiaries were dissolved as part of a restructuring exercise. NHPC said the Government exercised the oversubscription option in the ongoing offer-for-sale, increasing the total offer size to 6 per cent stake or 60.3 crore shares.

Mankind Pharma acquired the remaining 10 per cent stake in Upakarma, making it a wholly owned subsidiary. Concord Biotech received U.S. FDA approval for its Mycophenolate Mofetil abbreviated new drug application (ANDA), targeting a market opportunity of around USD 30 million. John Cockerill India secured an order worth approximately Rs 1,300 crore from JSW Vijayanagar Metallics for annealing and coating lines. Delhivery approved the incorporation of a new subsidiary, Delhivery Fintech Distribution.

Amber Enterprises India and Kaynes Technologies remain under the futures and options (F&O) ban list for June 3.

Foreign Institutional Investors (FIIs) remained net sellers on June 2, offloading equities worth Rs 8,362.92 crore. Domestic Institutional Investors (DIIs) provided support by purchasing shares worth Rs 9,589.32 crore.

Indian equities snapped a four-session losing streak on Tuesday, supported by gains in information technology stocks and value buying across select sectors. The Sensex rose 382.50 points, or 0.52 per cent, to close at 74,649.84, while Nifty 50 gained 100.95 points, or 0.43 per cent, to settle at 23,483.55.

U.S. markets finished modestly higher despite lingering geopolitical concerns. The Dow Jones Industrial Average climbed 228.91 points, or 0.45 per cent, to 51,307.79. The S&P 500 added 0.13 per cent to close at 7,609.90, while the Nasdaq Composite edged up 0.03 per cent to 27,093.90.

Among major technology stocks, Nvidia fell 0.69 per cent, AMD gained 2.24 per cent, Apple rose 2.90 per cent, Tesla advanced 1.89 per cent, while Microsoft, Amazon and Alphabet ended lower. Marvell Technology surged 32.52 per cent, emerging as one of the session's top performers.

Disclaimer: The article is for informational purposes only and not investment advice.

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