Indian equity benchmarks, the Sensex and Nifty, continued their downward trajectory for a fourth consecutive trading session on Tuesday, June 2, 2026. The market opened lower, reflecting a cautious sentiment across Asian markets and ongoing uncertainties surrounding US-Iran peace negotiations.
Benchmark Indices Face Pressure
In early trade, the BSE Sensex plummeted by as much as 452 points, settling at 73,863.82 by 9:18 am, a 0.54% decline. The NSE Nifty also saw a significant drop of 138.45 points, or 0.59%, to 23,244.15, briefly touching a low of 23,229.15.
This follows Monday's session where the Sensex closed down 508.40 points (0.68%) at 74,267.34, and the Nifty slipped 165.15 points (0.70%) to 23,382.60.
IT Stocks Defy Market Trend
While the broader market struggled, the information technology (IT) sector showed resilience. Major IT stocks, including Infosys, HCL Technologies, Tech Mahindra, and TCS, registered gains of up to 3.20% in early trading, providing some counter-balance to the market's overall weakness.
Conversely, several other Sensex constituents experienced notable declines. Bajaj Finance fell 2.60%, Eternal dropped 1.47%, while Bharat Electronics, Bajaj Finserv, and Trent slipped 1.65%, 1.58%, and 1.35% respectively.
Factors Contributing to Market Weakness
Analysts point to several factors fueling the market's cautious mood. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd., highlighted the ongoing impact of AI trade, new market records in the US, South Korea, and Taiwan, persistent selling by Foreign Portfolio Investors (FPIs) in India, and India's consistent underperformance with no immediate signs of reversal. Vijayakumar also noted that an energy shock has led to a downward revision of India's GDP growth and an upward revision of inflation for the current financial year.
Global Market Performance
The sentiment in Indian markets mirrored trends across most broader Asian markets. Japan’s Nikkei 225 plunged 1.64%, and South Korea’s Kospi slumped 1.52%. However, Hong Kong’s Hang Seng managed to gain 1.09%.
Overnight, Wall Street ended on a positive note, with all three major indices closing higher. The S&P 500 gained 0.26%, the Dow Jones Industrial Average edged up 0.09%, and the Nasdaq Composite advanced 0.42%.
Technical Outlook Remains Cautious
Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Ltd., described the technical setup as weak. He noted that benchmark indices are trading below key moving averages, momentum indicators are turning negative, and volatility is on the rise. Shah suggested that unless the Nifty can hold above 23,250 and reclaim the 23,700 zone, bears are likely to maintain control, keeping market sentiment cautious and volatile in the near term.