Market Close Report, June 3, 2026: Sensex ends 304 points down, Nifty holds 23,400 after volatile trade; IT stocks hammered

Mumbai, June 3: Indian benchmark indices recovered sharply from intraday lows to pare losses in a volatile session on Wednesday, although a steep selloff in information technology stocks kept the market in negative territory. The Nifty reclaimed the 23,400 mark by the close after falling below it earlier in the day, while gains in banking, healthcare and telecom shares helped cushion the decline.

The Sensex ended 303.67 points, or 0.41%, lower at 74,346.17, while the Nifty 50 fell 77.95 points, or 0.33%, to settle at 23,405.60. Market breadth remained weak, with 2,318 stocks declining against 1,714 advances on the NSE, reflecting broader caution among investors.

It Stocks Bear the Brunt

Technology shares emerged as the biggest laggards, with the Nifty IT index plunging 5.5% in its sharpest decline in months. Tata Consultancy Services (TCS), Tech Mahindra, HCL Technologies, Infosys and Wipro were among the top losers on the Nifty, as investors booked profits following the sector’s recent rally and reassessed the implications of artificial intelligence on traditional IT services business models.

Sensex tried very hard to pull itself out of the red but IT kept playing spoilsport throughout. Source: BSE

The sector’s weakness offset positive cues from global markets, where technology and semiconductor stocks had gained overnight amid optimism surrounding AI-related demand.

Banks, Healthcare Offer Support

Despite the sharp correction in IT, selective buying in financial and healthcare stocks helped the benchmarks recover from their day’s lows.

State Bank of India (SBI) and ICICI Bank were among the top gainers on the Nifty, while healthcare counters such as Apollo Hospitals and Max Healthcare attracted investor interest. Tata Motors Passenger Vehicles also featured among the day’s notable gainers.

Nifty 50 somehow pared losses as banking and others tried to stage a rescue. Source: NSE

The Nifty PSU Bank index jumped 1.7%, emerging as one of the strongest-performing sectoral gauges, while the healthcare index gained around 0.5%. The telecom index rose 2%, supported by gains in Vodafone Idea following recent rating upgrades and improving sentiment around the company’s funding outlook.

Broader Markets Outperform

The broader market showed relative resilience despite the benchmark decline. The Nifty Midcap 100 index fell 0.4%, while the Nifty Smallcap 100 index slipped just 0.1%, indicating that selling pressure was concentrated in large-cap technology stocks rather than being widespread across the market.

Among other sectors, FMCG and realty indices declined about 1% each, while the consumer durables index fell 0.8%.

Investors Monitor Global Cues

Market sentiment remained cautious amid elevated crude oil prices and ongoing geopolitical tensions in the Middle East. Rising oil prices have increased concerns over inflation and India’s import bill, prompting investors to adopt a more selective approach toward equities.

Volatility index increased as India VIX rose 6%. And as of writing Gift Nifty was trading at 23,488, which is higher than Nifty’s close today at 23,405.6.

Going forward, traders will closely track global developments, crude oil prices, foreign fund flows and domestic macroeconomic indicators for fresh direction. While the sharp selloff in IT stocks weighed on Wednesday’s trade, the market’s ability to recover significantly from intraday lows suggests buying interest remains intact in pockets of the market.

Source:

• NSE
• BSE