Nifty Ends in Red for Third Consecutive Session; Realty Index Outperforms

The Nifty 50 declined by 174.10 points (0.70 per cent) to settle at 24,542.50. The Sensex ended lower by 636.24 points (0.78 per cent) at 80,737.51.

Market Update at 4:00 PM: On June 3, Indian equity indices continued their downward trend, closing in the red for the third session in a row. Both the Nifty and the Sensex extended early losses throughout the day. The Nifty 50 declined by 174.10 points (0.70 per cent) to settle at 24,542.50, slipping below its 20-day moving average (20-DMA) for the first time since April 15. The Sensex ended lower by 636.24 points (0.78 per cent) at 80,737.51.

Several factors contributed to the market's decline. Foreign Institutional Investors (FIIs) remained net sellers over the last two trading sessions. A 3.27 per cent spike in Brent crude prices—now at USD 65 per barrel—raised concerns for India's oil-importing economy. Additionally, heightened geopolitical risks and renewed tensions in U.S.-China trade relations weighed on sentiment.

Investors are awaiting key global and domestic events this week, including U.S. jobs data, the European Central Bank’s policy decision, and the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting outcome on June 6. Meanwhile, the OECD revised India’s FY26 GDP growth forecast to 6.3 per cent, anticipating rate cuts from the RBI by the end of 2025.

Amid a largely negative market, the Nifty Realty index emerged as a bright spot, gaining 1.2 per cent, led by a 5.51 per cent jump in Sobha shares. The Nifty Media index also managed to close with modest gains of 0.54 per cent. However, only 2 of the 13 sectoral indices ended in positive territory.

Adani Group stocks dropped over 2 per cent following reports of a U.S. probe into suspected Iranian LPG imports. Yes Bank plunged more than 10 per cent after it refuted reports about Sumitomo Mitsui Banking Corporation applying to the RBI to set up a wholly owned subsidiary, potentially indicating an acquisition move. Ola Electric’s stock also saw a sharp decline of over 5 per cent amid a reported block deal involving a 3.2 per cent stake.

On the upside, Mahindra & Mahindra added 5.36 points to the Nifty 50, followed by Grasim (+2.88 points) and Bajaj Auto (+1.75 points). On the downside, ICICI Bank (-23.80 points), TCS (-12.55 points), and L&T (-11.42 points) were the top drags on the index.

Broader indices showed mixed trends. The Nifty Mid-Cap 100 declined by 0.45 per cent, whereas the Nifty Small-Cap 100 rose by 0.1 per cent. Market breadth remained negative, with 1,696 stocks declining and 1,224 advancing out of 2,999 NSE-listed stocks. While 60 stocks hit 52-week highs, 25 touched new 52-week lows. Furthermore, 103 stocks hit upper circuits and 71 were locked in lower circuits.

Market Update at 12:30 PM: On June 3, Indian equity markets declined as financial and IT sectors faced selling pressure. The Nifty 50 slipped by 0.29 per cent to 24,645.10, while the Sensex dropped 0.33 per cent, settling at 81,103.75 by 10:47 a.m. IST.

Sectoral performance showed weakness, with eight of the 13 indices ending in the red. Financial services and private banks declined 0.25 per cent and 0.7 per cent, respectively, while the IT sector lost 0.4 per cent. Analysts attributed the recent downturn in these sectors to continued foreign portfolio investor (FPI) outflows, which resumed after a brief buying streak, largely due to global trade uncertainties.

Adani Group stocks also came under pressure following a Wall Street Journal report that U.S. authorities are investigating whether the group imported Iranian LPG via its Mundra port. Adani Enterprises and Adani Ports, both part of the Nifty 50, fell 1.2 per cent and 1.5 per cent, respectively. The company denied knowingly violating sanctions or being aware of any ongoing probe.

Meanwhile, broader indices outperformed. The small-cap and mid-cap indices rose by 0.5 per cent and 0.1 per cent, respectively, indicating domestic market resilience. In individual stock action, Swiggy gained 2.1 per cent after Morgan Stanley initiated coverage with an "overweight" rating.

Market Update at 10:20 AM: On June 3, Indian equity indices began the trading session on a weak note, primarily due to a decline in Adani Group stocks. This followed a report by the Wall Street Journal stating that U.S. authorities are investigating alleged imports of Iranian liquefied petroleum gas through the Adani-operated Mundra Port. By 9:23 a.m. IST, the Nifty 50 had slipped 0.23 per cent to 24,660.7, and the BSE Sensex was down 0.28 per cent at 81,143.46.

Although both indices initially gained around 0.4 per cent shortly after market open, they soon lost momentum. Shares of Adani Enterprises and Adani Ports—both part of the Nifty 50—fell around 2.5 per cent each. The Adani Group responded by stating it has not knowingly engaged in any sanctions violations or in trading LPG sourced from Iran, and also claimed it is unaware of any investigation by U.S. agencies.

Despite pressure from headline news, broader market indicators showed strength. Seven of the 13 sectoral indices posted modest gains, while small-cap and mid-cap indices rose 0.5 per cent and 0.2 per cent, respectively, signalling steady domestic investor sentiment.

Pre-Market Update at 8:00 AM: Indian equity markets are expected to begin Tuesday, June 3, on a firm note, with GIFT Nifty trading around 24,855 as of 7:21 AM—marking an 85-point gain over its previous close.

Despite weak cues from global markets, Indian indices remain in a consolidation phase. Domestic strength continues to lend support, especially with expectations of a repo rate cut by the Reserve Bank of India. The Nifty 50 has been hovering within a narrow band of 24,500 to 25,000 over the past fortnight. A decisive move beyond this range could signal the next major trend.

Asian markets were trading higher, following overnight gains in U.S. stocks, even as concerns over global trade persist. Notably, domestic institutional investors (DIIs) have continued their buying streak, remaining net purchasers for the tenth consecutive session.

On June 2, foreign investors offloaded equities worth Rs 2,589.47 crore. In contrast, domestic institutions absorbed the pressure by purchasing stocks amounting to Rs 5,313.76 crore. This trend highlights sustained DII interest in Indian equities.

The week began on a choppy note, with benchmark indices ending slightly lower after recovering from a weak start. The Sensex closed down 77.26 points at 81,373.75, while the Nifty 50 slipped by 34.10 points to settle at 24,716.60.

Asian shares showed resilience, reflecting Wall Street’s positive finish. Japan’s Nikkei 225 rose 0.36 per cent, while the broader Topix saw marginal movement. Hong Kong’s Hang Seng index advanced 0.95 per cent, and South Korean markets remained closed due to local elections.

U.S. indices posted modest gains on Monday, supported by optimism around trade discussions. The Dow edged up by 35.41 points to 42,305.48. The S&P 500 climbed 24.25 points to 5,935.94, and the Nasdaq moved up 128.85 points to close at 19,242.61.

Meanwhile, manufacturing in the U.S. contracted for the third straight month. The ISM Manufacturing PMI slipped to 48.5 in May, its lowest since November, falling short of market forecasts.

The U.S. dollar weakened to a six-week low amid signs of economic softness. The dollar index hovered near 98.58, marking a notable decline since late April.

Gold continued its rally, supported by a softer dollar and heightened demand for safe-haven assets. Spot gold rose to USD 3,381.13 per ounce—its highest since early May—building on the previous session’s 2.7 per cent jump.

Oil prices also moved higher, driven by concerns over supply disruptions. Brent crude was up 0.80 per cent at USD 65.15 per barrel, and WTI crude gained 0.91 per cent to trade at USD 63.09, after both surged nearly 3 per cent a day earlier.

For today, Manappuram Finance continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.