Indian benchmark stock indices experienced a significant downturn today, resuming their losing streak amidst escalating geopolitical tensions in the Middle East. The Sensex plunged 700 points to close at 73,949, while the Nifty shed 185 points, settling at 23,299 in early trading on June 3, 2026.
Geopolitical Concerns Drive Market Volatility
The market's decline was primarily triggered by fresh missile attacks launched by Iran against Bahrain, Kuwait, and other regional allies of the United States. This escalation immediately impacted global commodity markets, pushing Brent crude oil rates up by 1% to $97 per barrel. Earlier, oil prices had surged to $126.41 per barrel due to the broader implications of the US-Iran conflict on the world economy.
India VIX, the volatility index for the Indian stock market, reflected the heightened uncertainty, jumping 8% to 16.56 today, up from 15.36 on Tuesday.
Top Losers and Gainers
Among the Sensex constituents, several prominent IT and banking stocks bore the brunt of the sell-off. Shares of TCS, Tech Mahindra, Infosys, and HCL Tech were among the top losers, alongside Eternal, ITC, Axis Bank, SBI, and Bajaj Finance, with some falling by as much as 6%.
Conversely, a few stocks managed to defy the broader market trend. Adani Ports, Maruti, Tata Steel, and Bharti Airtel recorded gains, rising up to 1.04% during the session.
Expert Outlook and Rupee Weakness
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, commented on the situation, stating, "The mild escalation in the West Asia conflict has again pushed up Brent crude price to close to $97 indicating no respite to India from the energy shock." He also highlighted the rupee's depreciation, which edged down to 95.26 against the dollar. Vijayakumar noted that while the sustained fall in the rupee has been arrested for now, the rising current account deficit and continued Foreign Portfolio Investor (FPI) outflows remain significant concerns for the Indian economy. Market participants are now keenly awaiting the Reserve Bank of India's (RBI) commentary and actions scheduled for June 5th.
Market Breadth and Previous Session
Despite the overall negative sentiment, market breadth on the BSE was mixed, with 1198 shares rising against 1791 falling, while 148 shares remained unchanged. A total of 61 stocks touched their 52-week highs, contrasting with 29 shares that hit their 52-week lows.
This decline follows a brief respite on Tuesday, when domestic equity benchmarks had snapped a four-day losing streak. In the previous session, the Sensex had gained 382.50 points (0.52%) to close at 74,649.84, and the Nifty had advanced 100.95 points (0.43%) to settle at 23,483.55, supported by value buying and gains in IT stocks.