Market Open Report, June 2, 2026: Markets Open Lower on Tuesday; Sensex Sheds 244 points as Iran Diplomacy Unravels, Only IT Holds Firm

Mumbai, June 2: Domestic equity benchmarks opened Tuesday’s session under pressure, extending a losing streak that has now stretched to five sessions, as Iran’s foreign ministry publicly accused Washington of issuing contradictory demands and blamed continued Israeli strikes in Lebanon for delaying ceasefire negotiations.

At 9:36 am, the BSE Sensex was trading at 74,022.96, down approximately 244 points from Monday’s close of 74,267.34, while the Nifty 50 slipped 87.55 points or 0.37% to 23,295.05 — the index’s lowest intraday level in several weeks and a breach of the significant 23,300 support zone that market technicians had been watching closely. The opening tone was broadly risk-off, with selling visible across financials, defence, infrastructure and consumption names even as IT stocks continued to outperform on AI-deal optimism and improving global technology sentiment.

Middle East: Diplomacy Stalls

Iran’s foreign ministry spokesperson Esmaeil Baghaei on Monday delivered the starkest public assessment yet of the state of US-Iran negotiations, accusing Washington of constantly changing its positions and introducing new or contradictory demands — saying this “naturally prolonged negotiations” and warning that such tactics would not work with Tehran. Baghaei also said Iran viewed Israeli actions in Lebanon as inseparable from those of the US, making implementation of the Lebanon ceasefire a prerequisite for any broader deal, further complicating the diplomatic landscape. The Iranian Revolutionary Guards’ announcement that they had targeted a US base in Kuwait in response to weekend American strikes on Iranian military sites has added a dangerous new front to the conflict, raising the risk of a broader regional escalation. With Trump simultaneously saying talks were continuing and that he “did not mind if they were over,” and Iran accusing Washington of disarray, the diplomatic framework that briefly underpinned commodity market optimism last week appears to have fragmented significantly.

Gainers and Losers

Among the early Nifty 50 gainers, Infosys led with a sharp 3.73% advance to an LTP of ₹1,247.40 from its previous close of ₹1,202.50, followed by TCS which gained 2.66% to ₹2,358.40 from ₹2,297.40. Tech Mahindra rose 1.78% to ₹1,570.60 from ₹1,543.20, HCL Technologies climbed 1.75% to ₹1,216.00 from ₹1,195.10, and Wipro edged up 0.74% to ₹207.93 from ₹206.41 — all five being IT stocks, underlining the sector’s extraordinary divergence from the rest of the market this week.

On the losing side, Bajaj Finance was the sharpest decliner, falling 2.71% to ₹864.95 from its previous close of ₹889.05, followed by Eternal down 1.59% to ₹244.15 from ₹248.10, Bajaj Finserv slipping 1.51% to ₹1,732.30 from ₹1,758.90, Power Grid declining 1.47% to ₹281.95 from ₹286.15, and BEL easing 1.44% to ₹401.35 from ₹407.20.

Broader and Sectoral Markets

In the broader market, selling was uniform and broad-based, with the Nifty Midcap 100 declining 0.52% to 60,514.10, the Nifty Smallcap 100 down 0.36% to 17,914.40 and the Nifty Next 50 falling 0.63% to 69,478.95, suggesting the weakness was not confined to large-caps but spread across the market capitalisation spectrum. On the sectoral front, Nifty IT was the solitary outperformer, surging 2.50% to 30,599.50, with Nifty Midsmall IT & Telecom also gaining 1.12% to 9,702.55, Nifty India Digital rising 0.59% to 7,962.55 and Nifty Metal edging up 0.08% to 13,517.95. On the losing side, Nifty Financial Services Ex-Bank was the biggest sectoral decliner at −1.37% to 30,096.50, followed by Nifty Pharma down 0.90% to 23,995.50, Nifty Bank falling 0.66% to 53,288.90 and Nifty India Defence slipping 0.61% to 8,869.85.

Asian Markets

Asian markets were broadly weaker on Tuesday morning, with Japan’s Nikkei 225 tumbling 1.62% to 65,851.75 as the yen strengthened on safe-haven demand and risk appetite deteriorated following Iran’s escalatory statements. Australia’s ASX All Ordinaries fell 0.49% to 8,925.70, while Pakistan’s KSE 100 slipped sharply by 1.93% to 1,70,600.20 — a notable reversal after last week’s gains — as regional geopolitical anxiety spread to frontier markets. In contrast, the Hang Seng bucked the trend with a 0.98% gain to 25,646.73 and Thailand’s SET rose 0.58% to 1,577.47, reflecting the mixed and fractured nature of Tuesday’s Asian open.

US Markets

Wall Street ended Monday largely in positive territory, with the Dow Jones Industrial Average edging up 0.09% to 51,078.88, the Nasdaq gaining 0.42% to 27,086.81 and the S&P 500 rising 0.26% to 7,599.96, supported by continued technology buying that offset weakness in energy and financial names. The relatively contained gains reflected the market’s ability to compartmentalise the geopolitical noise from fundamental stock-specific catalysts, though the session’s muted breadth suggested investors were maintaining a cautious overall posture.

Oil Prices

Oil prices held firm near the upper end of recent ranges in early Tuesday trade, with Brent crude inching up 6 cents to $95.04 a barrel and WTI easing marginally by 17 cents to $91.99 — consolidating after both benchmarks had surged more than 5% on Monday on renewed Middle East escalation. Conflicting signals from Washington and Tehran on the status of ceasefire negotiations kept traders on edge, with Trump saying talks were continuing even as Iran accused the US of contradictory demands and the Iranian Revolutionary Guards claimed to have struck a US base in Kuwait. The persistence of crude near $95 Brent continues to weigh on the Indian macro outlook, maintaining upward pressure on the current account deficit, fuel subsidy costs and headline inflation.

Monday’s Indian Market Close

Indian benchmark indices ended lower for a fourth consecutive session on Monday, with the Sensex closing down 508.40 points or 0.68% at 74,267.34 and the Nifty 50 falling 165.15 points or 0.70% to 23,382.60, slipping below the psychologically significant 23,400 mark as rising crude oil prices and concerns over a weak monsoon outweighed IT sector strength. Market breadth was firmly negative, with 2,665 stocks declining against just 1,505 advances on the NSE. The slide left the Nifty down approximately 1,100 points, or 4.5%, from its intraday high of last Friday when brief ceasefire optimism had temporarily lifted benchmarks, underscoring how quickly sentiment can reverse in the current geopolitically charged environment.

Source:

• nseindia.com
• Bseindia.com
• https://www.nseindia.com/market-data/top-gainers-losers