NIFTY TRADES BELOW 23,350 MARK; EUROPEAN MRKT DECLINE

Published on Jun 03, 2026 13:44

The key equity benchmarks traded with significant losses in afternoon trade pressured by a sharp rise in crude oil prices and growing geopolitical uncertainty in the Middle East. Investor sentiment remained subdued amid concerns over the status of ceasefire negotiations between the United States and Iran, which have fueled volatility in global energy markets and pushed crude oil prices higher. The Nifty traded below 23,350 mark.

IT, realty and consumer durables shares declined while PSU bank and private bank shares advanced.

At 13:25 ST, the barometer index, the S&P BSE Sensex declined 505.15 points or 0.68% to 74,144.69. The Nifty 50 index fell 146.40 points or 0.60% to 23,342.70.

In the broader market, the BSE 150 MidCap Index fell 0.81% and the BSE 250 SmallCap Index dropped 0.48%.

The market breadth was negative. On the BSE, 1,443 shares rose and 2,630 shares fell. A total of 182 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rallied 6.38% to 16.34.

In the commodities market, Brent crude for July 2026 settlement advanced $1.93 or 2.01% to $97.93 a barrel.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 95.7700 compared with its close of 95.3650 during the previous trading session.

Gainers & Losers:

Apollo Hospital Enterprises (up 2.21%), Trent (up 1.44%), Max Healthcare (up 1.35%) and Oil and Natural Gas Corporation (ONGC) (up 1.08%) were the major Nifty50 gainers.

Tata Consultancy Services (TCS) (down 8.50%), Tech Mahindra (down 5.71%), HCL Technologies (down 4.84%) and Infosys (down 3.79%) were the major Nifty50 losers.

Economy:

The HSBC India Services PMI was revised higher to 59.8 in May 2026 from the preliminary estimate of 58.9 and a final reading of 58.8 in April. Still, the latest reading marked the strongest growth since last November, as output continued to expand while new orders rose at the fastest pace in three months. Output growth was supported by healthy demand conditions, new client wins, and ongoing improvements in new business intakes. New export business also rose, albeit at a slower pace than total sales and the average recorded during the 2025 calendar year.

Meanwhile, employment increased, with job creation remaining solid and the second-fastest in just under a year. On prices, both input and output inflation recorded their strongest increases in four months, driven by higher food, fuel, gas, labor, and material costs. Lastly, sentiment weakened to a three-month low and remained below the historical trend, though firms stayed optimistic due to expectations of favorable demand conditions.

Stocks in Spotlight:

Varroc Engineering advanced 1.53% after the company said that it has entered into a strategic cooperation agreement with China-based TOLYY OPTRONICS to localise and supply next-generation digital cockpit display solutions for global passenger and commercial vehicle platforms.

NMDC rose 0.22%. The company announced that it increased the prices of its key iron ore products, Baila lump iron ore and Baila fines with effect from June 3, 2026. The company has revised the price of Baila Lump ore (65.5%, 10-40 mm) to Rs 5,700 per ton, up Rs 200 per tonne from Rs 5,500 per ton fixed on May 6, 2026. Similarly, the price of Baila Fines (64%, -10 mm) has been increased to Rs 4,850 per ton from Rs 4,700 per ton, reflecting a hike of Rs 150 per ton.

IndusInd Bank fell 1.82% following a media report about a fresh whistleblower complaint against the private lender. According to the media report, the complaint was sent to the Prime Minister`s Office, the Reserve Bank of India (RBI), the Serious Fraud Investigation Office (SFIO), the National Financial Reporting Authority (NFRA) and other agencies.

The complaint reportedly seeks an investigation into alleged insider trading, governance failures and shortcomings in forensic and audit reviews. The allegations are linked to the discovery of a Rs 2,000-crore discrepancy at the bank. The report said the complaint names Samir Agarwal, former zonal head of eastern India at IndusInd Bank.

According to the report, Agarwal allegedly made gains of around Rs 46 crore through share transactions worth nearly Rs 815 crore.

Meanwhile, the stock exchanges have sought clarification from IndusInd Bank regarding the news report. The bank`s response is awaited.

Zydus Lifesciences shed 0.17%. The company said that it has received a warning letter from the United States Food and Drug Administration (USFDA) relating to its formulation manufacturing facility located at Baddi, Himachal Pradesh. The warning letter was issued in response to a request for records pursuant to a section of the Federal Food, Drug, and Cosmetic Act, and does not pertain to any on-site inspection of the facility by the US FDA.

Concord Biotech jumped 4.05% after the company received an approval from the U.S. Food and Drug Administration (USFDA) for its ANDA, Mycophenolate Mofetil for oral suspension USP, 200 mg/mL.

Mycophenolate mofetil is an antimetabolite immunosuppressant used to prevent organ rejection in adult and pediatric patients aged three months and older who have undergone kidney, heart, or liver transplants, in combination with other immunosuppressants. According to market estimates, the U.S. market for Mycophenolate Mofetil is approximately $30 million.

Global Markets:

European market declined as investors weighed U.S. proposals for sweeping new tariffs on 60 countries.

Asian markets traded higher on Wednesday as investors appeared to look past uncertainty over U.S.-Iran negotiations aimed at ending the Middle East conflict.

Tensions have escalated between Washington and Tehran, with Secretary of State Marco Rubio saying on Tuesday that Iran has mined "large segments� of the Strait of Hormuz.

A White House official was quoted by the media saying that the Pentagon has destroyed numerous mines and over 40 minelaying vessels.

The Strait of Hormuz is a critical waterway, particularly for the energy market globally � around 20% of the world�s oil supplies passed through the strait before the war.

Overnight on Wall Street, the S&P 500 ticked up to a record close after reaching a new all-time high on Tuesday as traders monitored the latest U.S.-Iran developments as well as moves in major tech names.

The broad-based index advanced 0.13% to end at 7,609.78 for its first close above the 7,600 threshold, while the Dow Jones Industrial Average gained 228.91 points, or 0.45%, to 51,307.79. The latter also rose to a new all-time intraday high earlier in the session. The Nasdaq Composite eked out a gain of 0.03% to end at 27,093.90.