Stock Market Mid-Day Report, June 1, 2026: US-Iran Ceasefire Extension Gets Cold Feet as Pentagon Strikes Back; Sensex Surrenders Morning Gains 

Mumbai, June 1: Indian equity benchmarks surrendered their morning gains by midday on Monday, June 1, as a fresh round of US military strikes on Iran over the weekend revived geopolitical risk anxiety and pushed investors toward the exits across most sectors.

At 12:03 am, the BSE Sensex was trading at 74,645.91, down 129.83 points or 0.17% from Friday’s close of 74,775.70, while the Nifty 50 slipped 45.35 points or 0.19% to 23,502.40 a sharp reversal from the cautiously positive open that had seen the Sensex briefly touch 75,009 in early trade.

Gainers

Among the Nifty 50 gainers at midday, Tech Mahindra led with a sharp 4.25% advance to ₹1,546.90 from its previous close of ₹1,483.90, extending the IT sector’s Friday momentum on continued AI-deal optimism. Infosys rose 4.16% to ₹1,209.20 from ₹1,160.90, followed by Coal India which gained 3.47% to ₹473.80 from ₹457.90 on strong fuel demand tailwinds. TCS climbed 2.91% to ₹2,324.70 from ₹2,258.90, and IndiGo advanced 2.08% to ₹4,496.60 from ₹4,405.00, benefiting from lower jet fuel cost expectations tied to Brent’s recent correction.

Losers

On the losing side, Bajaj Finance was the sharpest decliner, falling 1.86% to ₹891.35 from its previous close of ₹908.25 as financial services stocks bore the brunt of risk-off selling. HUL shed 1.83% to ₹2,114.10 from ₹2,153.50, Tata Consumer Products dropped 1.71% to ₹1,158.30 from ₹1,178.40, Max Healthcare slipped 1.70% to ₹948.70 from ₹965.10, and UltraTech Cement fell 1.60% to ₹11,298.00 from ₹11,482.00 as infrastructure and consumption names faced profit-booking.

Broader and Sectoral Markets

In the broader market, the Nifty Smallcap 100 held up best, slipping only 0.10% to 18,120.95, while the Nifty Midcap 100 fell 0.90% to 61,167.10 and the Nifty Next 50 declined 0.78% to 70,517.25 suggesting that selling pressure was more concentrated in mid-caps than in smaller names.

On the sectoral front, Nifty IT was the standout outperformer, surging 3.51% to 30,102.00, followed by Nifty Midsmall IT & Telecom which rose 2.16% to 9,716.85, Nifty Media which gained 2.36% to 1,441.50, and Nifty India Digital which climbed 1.20% to 7,962.90. On the losing side, Nifty India Defence was the biggest sectoral decliner at −1.57% to 8,964.20, followed by Nifty FMCG down 1.26% to 48,761.65, Nifty Financial Services Ex-Bank falling 1.30% to 30,758.45, and Nifty PSU Bank shedding 1.13% to 8,064.30.

Oil Prices

Oil prices rose sharply in early Monday trade, with US crude futures jumping 2.71% to $89.73 a barrel and Brent rising 2.37% to $93.28, as Israel’s stepped-up military push into Lebanon dimmed expectations of an imminent West Asia ceasefire extension. The move reversed Friday’s 1.7–1.8% decline in both benchmarks, which had been driven by hopes of a Strait of Hormuz reopening deal. Volatile crude prices remain a key risk for Indian equities given the country’s high import dependence and the ongoing pressure on the fiscal deficit from elevated energy costs.

Asian Markets

Asian markets were mixed on Monday morning, with Japan’s Nikkei 225 surging 1.07% to 67,038.24 as yen weakness and renewed tech optimism drove broad-based buying, while the Hang Seng gained 1.14% to 25,469.18 on Hong Kong financial stock buying. Pakistan’s KSE 100 rose 1.30% to 1,73,962.82 and China’s Shanghai Composite edged up 0.46% to 4,087.17, reflecting selective optimism in emerging market equities. However, Southeast Asian markets were broadly weaker, with Australia’s ASX All Ordinaries slipping 0.08% to 8,957.40, Indonesia’s JSX easing 0.05% to 6,127.38 and Thailand’s SET falling 0.04% to 1,568.37, with the regional mood reflecting a cautious split between North Asia and the Asean bloc.

US Markets

Wall Street ended Friday’s session on a broadly positive note, with the Dow Jones Industrial Average gaining 0.72% to 51,032.46 and the S&P 500 rising 0.22% to 7,580.06, as a technology-led rally offset energy sector pressure. The Nasdaq Composite edged up 0.20% to 26,972.62, supported by AI-linked buying in large-cap tech names even as investors remained cautious about the geopolitical outlook heading into the weekend.

Morning Markets at Open

Domestic markets opened cautiously higher on Monday morning, with the BSE Sensex and NSE Nifty 50 attempting a modest recovery from Friday’s brutal selloff but the gains remained tentative and capped by the shadow of the Iran war, after US Defence Secretary Pete Hegseth declared at the weekend that Washington’s military machine stands fully primed to resume strikes on Tehran if negotiations collapse. At 9:21 AM, the BSE Sensex was trading at 75,009.26, up 233.52 points or 0.31% from its previous close, while the Nifty 50 was at 23,615.90, higher by 68.15 points or 0.29%.

Iran-US War

The weekend’s developments have materially darkened the geopolitical backdrop. US Defence Secretary Pete Hegseth, speaking at the Shangri-La Dialogue in Singapore on Saturday, declared that Washington remained “more than capable” of resuming large-scale military operations against Tehran if a deal cannot be reached, saying its stockpiles were “more than suited” for that purpose. Hours later, US Central Command confirmed it had carried out “self-defence strikes” on Iranian radar and drone control sites at Goruk and Qeshm Island, after Iran shot down a US MQ-1 drone operating over international waters with American fighter aircraft responding by eliminating Iranian air defences, a ground control station and two one-way attack drones. The strikes have effectively shattered the tentative optimism around a ceasefire extension that had briefly lifted markets last Thursday, and investors are now reassessing the timeline and probability of any durable diplomatic resolution to the Iran conflict.

Source:

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