Stock Market Close, June 2, 2026: Nifty Tops 23,400 as IT Stocks Spark Rebound; Sensex Gains 383 Points, Pharma Drags

Mumbai, June 2:Indian equity benchmarks ended higher on Tuesday after a volatile trading session, with strong buying in information technology stocks helping the market overcome concerns around elevated crude oil prices, Middle East tensions and persistent foreign fund outflows.

The Sensex rose 382.50 points, or 0.52%, to close at 74,649.84, while the Nifty 50 gained 100.95 points, or 0.43%, to settle at 23,483.55, comfortably above the 23,400 mark. Market breadth remained positive, with 2,222 stocks advancing against 1,803 declines, while 165 stocks remained unchanged.

The gains marked a reversal from recent weakness and helped the benchmarks snap a four-session losing streak.

Technology Stocks lead the charge

The rally was driven largely by heavyweight technology stocks, which emerged as the biggest gainers amid improving sentiment toward the sector globally.

The Sensex rose from the red as IT lifted the index out of its woes. Source: BSE

Tata Consultancy Services (TCS), Infosys, HCL Technologies and Tech Mahindra featured among the top performers on the Nifty, benefiting from renewed optimism around artificial intelligence-driven spending and expectations of a recovery in global technology demand. Adani Enterprises also figured among the index’s leading gainers.

The Nifty IT index surged 4.2%, significantly outperforming the broader market and providing the biggest boost to benchmark indices. Investor sentiment towards the sector has improved in recent sessions following a rebound in global software stocks and growing confidence that Indian IT companies could benefit from increasing enterprise spending on AI, cloud computing and digital transformation.

Pharma and Power Stocks Under Pressure

While technology stocks led the advance, several defensive sectors remained under pressure.

Nifty 50 rose above volatility to end in the green as eight of the 16 major sectors advanced. Source: NSE 

NTPC, Power Grid Corporation, Axis Bank, Dr. Reddy’s Laboratories and HDFC Life Insurance were among the biggest laggards on the Nifty. The Nifty Pharma, Healthcare and Power indices declined between 0.3% and 0.8%, limiting the broader market’s gains.

Investors continued to rotate money into sectors perceived to have stronger earnings momentum, while some profit-taking emerged in defensives that had outperformed during recent bouts of market volatility.

Broader Market Participation Remains Healthy

The positive sentiment extended beyond frontline stocks, with broader markets also ending in the green.

The Nifty Midcap 100 index rose 0.2%, while the Nifty Smallcap 100 gained 0.4%, indicating continued investor interest in the broader market despite lingering macroeconomic concerns.

Other sectoral indices also posted gains, with PSU banks, automobiles, metals, consumer durables and realty stocks advancing between 0.5% and 1%.

Focus Shifts to RBI Policy, Crude Oil

Investors now await the Reserve Bank of India’s policy decision later this week for clues on the interest-rate outlook. The central bank is widely expected to keep rates unchanged as policymakers weigh growth considerations against inflationary risks.

Crude oil prices and developments in the Middle East will also remain in focus. Although Brent and WTI crude eased from recent highs on Tuesday, both benchmarks remain elevated, keeping concerns alive about inflation, import costs and corporate margins.

For now, the sharp rebound in IT stocks has provided fresh momentum to Dalal Street, helping benchmark indices recover despite a challenging global backdrop.

Source:

• NSE
• BSE