Sensex, Nifty Slip from Day’s High; India’s Manufacturing PMI Hits 3-Month High

Indian equity benchmark indices slipped into the red after trimming their early morning gains on Monday, June 01, 2026. As of 10:40 AM, the Nifty 50 was trading lower by 0.02 per cent, while the Sensex was down by 0.01 per cent. The Bank Nifty also remained under pressure, falling over half a per cent.

Sectoral Trend: Nifty IT and Media Stand Out

The broader sectoral picture remained weak, with most indices trading in the red. However, Nifty IT and Nifty Media stood out as notable gainers, rising over 2.5 per cent each. The strength in the IT pack was broad-based, with all constituents of the Nifty IT index trading in the green.

Manufacturing PMI Shows Resilience

On the macro front, India’s HSBC Manufacturing PMI rose to 55.0 in May 2026 from 54.7 in April, marking a three-month high. The reading was also revised upward from the flash estimate of 54.3.

The improvement was supported by stronger growth in new orders, output and purchasing activity. Domestic demand remained the key driver, while export momentum softened. Sales growth was led by intermediate and capital goods, helped by infrastructure spending and fresh business wins.

Manufacturers also increased input purchases to build inventories, while better supply conditions and shorter delivery timelines supported higher pre-production stocks. Finished goods inventory rose to an 11-year high, indicating that supply outpaced demand during the period.

Employment growth moderated, while backlogs increased slightly. On the inflation front, input costs rose sharply due to higher energy, fuel, raw material and transport costs, partly linked to geopolitical tensions. However, output price inflation remained relatively contained as companies avoided passing on the full cost burden to customers.

Business confidence stayed positive, supported by healthy order pipelines and expectations of easing cost pressure.

IIP Data in Focus

Investors will also track the Index of Industrial Production data scheduled to be released later in the day. In March 2026, India’s industrial production rose 4.1 per cent year-on-year, slower than the revised 5.1 per cent growth recorded in February. The March reading marked the slowest expansion in five months, although it remained above expectations of 3.7 per cent.

Stock-Specific Action

Among individual stocks, NIIT Ltd, Sportking India, Wockhardt and Ind-Swift Laboratories gained up to 12 per cent in Monday’s trade, drawing strong market attention amid selective buying.

Crude and Rupee Add Pressure

Crude oil prices remained elevated, with WTI crude futures hovering near USD 90 per barrel. Meanwhile, the rupee depreciated 9 paise to 94.94 against the US dollar in early trade on Monday. The weakness in the currency was weighed by firm crude oil prices and rising geopolitical concerns as the Israel-Lebanon conflict escalated.

Overall, the market tone remained cautious, with benchmark indices struggling to hold early gains despite strength in IT and Media stocks. Macro data, crude oil movement and currency trends are likely to remain key monitorable through the session.

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