Market Wrap, 3 June 2026: Sensex, Nifty End In Red Despite Recovery Attempt

Indian benchmark indices remained in negative territory on Wednesday. Although they pared some of their earlier losses, a sharp decline in information technology stocks continued to take a toll on investors’ sentiments. At the closing bell, the:

• Nifty 50 stood at 23,405.60, down 0.33%

• Sensex stood at 74,346.17, down 0.41%

The weakness was not limited to frontline indices. Broader markets also remained under strain. The Nifty Midcap 100 index closed 0.42% lower and the Nifty Smallcap 100 index was down 0.11%.

IT Stocks Lead Market Decline

Technology shares emerged as the biggest drag on the market. The Nifty IT index fell more than 5%, making it the worst-performing sectoral index during the session. The sharp decline came as investors cut exposure to the sector amid growing uncertainty in global markets.

The selloff in IT stocks outweighed gains in several pockets of the market and kept benchmark indices under pressure. Other rate-sensitive sectors also lagged. The Nifty Realty index remained among the weakest performers.

Metal stocks, however, displayed resilience. The Nifty Metal index emerged as the best-performing sectoral gauge, recording the smallest decline among major indices.

What Spooked Investors?

Several factors contributed to the market decline today. These included:

• Continued US-Iran tensions with the US military claiming to have intercepted several Iranian missile and drone attacks across the Gulf.

• Increase in crude oil prices, with Brent crude oil futures hovering close to USD 100 per barrel, along with the weakening of the rupee against the dollar in early trade.

• Continuous selling of foreign institutional investors, who offloaded shares worth ₹8,363 crore on Tuesday.

• Rise in US 10-year bond yields due to renewed geopolitical uncertainties. At 15:40, the US 10-year bond yield stood at 4.48%.

Other Major Headlines

Here are some other news items that made headlines today:

• India's crude oil and liquefied petroleum gas (LPG) imports showed signs of recovery in May. Crude imports rose to about 4.9 million barrels per day (mbd) in May from 4.5 mbd during March and April.

• Uber and Paytm announced plans to invest ₹60 crore each in the Open Network for Digital Commerce (ONDC) platform.

• Borosil Renewables shares surged 10% in intraday trade after the government levied fresh duties on Malaysian imports.

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Gold And Silver Watch

Gold and silver prices witnessed some weakness in domestic markets. At 15:45, Gold June futures on the Multi Commodity Exchange of India (MCX) stood at ₹1,54,100 per 10 grams, down 0.93%. July silver futures during the same time stood at ₹2,65,024 per kg, down 0.63%.

Market participants are likely to keep a close watch on movements in IT stocks in the next trading session after the sector's sharp underperformance. Developments around the US-Iran situation will remain a key trigger for sentiment.

Sources:

Moneycontrol

The Economic Times

The Times of India