Indian equity benchmarks staged a dramatic intraday reversal on Tuesday, June 2, 2026. The BSE Sensex opened sharply lower, shedding roughly 244 points in early trade before surging nearly 1,000 points from its intraday low to hit 74,813.35. The 30-share index ultimately settled near the 74,267 mark. On the NSE, the Nifty 50 breached the 23,300 support level at the open but recovered strongly, climbing to an intraday high of 23,535.05 and closing at 23,483.55, up 100.95 points or 0.43 per cent. The recovery was powered by aggressive buying in information technology stocks during the second half of the session, aided by optimism around the ongoing India–US trade negotiations scheduled for June 2, 3 and 4. Market breadth remained mixed, with broader indices—MidCap 100 and SmallCap 100—gaining only marginally at 0.04 per cent and 0.01 per cent respectively.
Foreign institutional investors continued to pull money from Indian equities. As of the previous session (June 1), FIIs were net sellers to the tune of ₹3,911.68 crore, reflecting continued caution among overseas funds amid geopolitical uncertainty and elevated crude oil prices. Domestic institutional investors, on the other hand, stepped in as net buyers with inflows of ₹5,109.13 crore, cushioning the downside and providing a solid floor for benchmark indices. The tug-of-war between FII selling and DII buying has been a defining feature of Indian markets in recent weeks, and the pattern is expected to continue until global macro risks subside.
IT heavyweights dominated the gainers list. TCS, Infosys, HCL Technologies and Tech Mahindra surged between 3 and 5 per cent each, buoyed by sustained investor interest in India’s technology sector and positive global cues following Nvidia’s new chip announcement in the US. On the losing side, NTPC, Power Grid, Axis Bank and Bajaj Finance dragged the indices lower. Power and utility stocks faced profit-booking after their recent rally, while select banking and financial names slipped on rate-sensitivity concerns as traders awaited clarity on the RBI’s next policy move.
The Nifty IT index was the undisputed outperformer of the day, rallying over 4 per cent and single-handedly lifting the broader market from its morning slump. Nifty Auto, Nifty Bank, Nifty Metal, Nifty Realty, Nifty Chemical and Nifty Consumer Durables also closed in the green, although their gains were modest in comparison. On the flip side, Nifty Pharma and Nifty Energy underperformed, with healthcare names seeing mild selling pressure and energy counters weighed down by uncertainty over crude oil supply dynamics linked to the US–Iran situation.
Gold prices in India held steady on June 2. The 24-karat variant was quoted at ₹15,621 per gram, while 22-karat gold stood at ₹14,320 per gram, both virtually unchanged from the previous session after Monday’s sharp correction. Silver extended its sideways run for the fourth straight day at ₹2,80,000 per kilogram. On the energy front, ICE Brent crude futures eased 1.62 per cent to approximately $93.44 per barrel in afternoon trade after President Trump indicated that negotiations with Iran were continuing, even as Tehran suspended indirect talks citing conflicting signals from Washington.
The Indian rupee traded under pressure, hovering near ₹95.16–95.19 against the US dollar, close to recent lows. The greenback remained firm globally on the back of rising US bond yields and expectations that the Federal Reserve would maintain its hawkish stance on interest rates. Continued FII outflows from Indian equities added to the selling pressure on the rupee. However, suspected intervention by the Reserve Bank of India near the 95.20 level helped contain the slide. Traders will closely watch Friday’s US nonfarm payrolls data for further directional cues on the dollar index.
Wall Street ended Monday’s session at fresh record highs. The S&P 500 gained 0.3 per cent, the Nasdaq advanced 0.4 per cent, and the Dow Jones added 46 points, driven by a technology-led rally after Nvidia unveiled its RTX Spark Superchip and announced its entry into the PC market. Microsoft, Oracle and Micron Technology also benefited from the AI tailwind. Asian markets, however, opened mixed on Tuesday. Japan’s Nikkei dipped 0.30 per cent, while European futures pointed to a modestly positive open. Investors across the globe remained watchful of US–Iran peace talks and the upcoming US jobs data later in the week.
Tuesday’s dramatic recovery underscored the resilience of Indian equities, particularly the outsized role that IT stocks are playing as a safe haven amid global uncertainty. The India–US trade-deal optimism, easing crude prices and strong DII buying provided the ammunition for the rebound. However, persistent FII outflows, a weakening rupee and elevated oil prices remain headwinds. Traders should keep an eye on the outcome of the three-day India–US trade negotiations, the US jobs report on Friday and Brent crude price action for near-term direction. The Nifty’s ability to hold above 23,300 on the downside will be critical for sustaining the current recovery momentum.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Stock market investments are subject to market risks. Please consult a certified financial advisor before making any investment decisions.
