- June 1, 2026
Sensex Declines 508 Points After 1,100-Point Swing, Nifty Ends Below 23,400 As FMCG, Financials Drag
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The Sensex settles at 74,267.34, down 508.40 points or 0.68%, while the Nifty 50 closes at 23,382.60, lower by 165.15 points or 0.70%.
Stock Market Today.
Market Updates Today: The domestic equity market ended sharply lower on Monday after surrendering strong opening gains, with investors turning cautious amid escalating tensions in the Middle East, FII selling and uncertainty ahead of key domestic events, including the RBI policy decision and GDP data.
The Sensex settled at 74,267.34, down 508.40 points or 0.68%, while the Nifty 50 closed at 23,382.60, lower by 165.15 points or 0.70%.
The session was marked by a dramatic reversal. After opening in the green and touching an intraday high of 75,367.93, the Sensex plunged more than 1,100 points from its peak before trimming some losses towards the close. Similarly, the Nifty fell nearly 350 points from its day’s high of 23,733.70.
Geopolitical Tensions Trigger Risk-Off Mood
Market sentiment deteriorated through the day as investors reacted to renewed hostilities in West Asia.
“Recent US strikes and the escalation in cross-border hostilities between Israel and Lebanon have exerted selling pressure on equity markets, reflecting heightened geopolitical uncertainty and a shift towards risk-off sentiment,” said Vinod Nair, head of research at Geojit Investments.
According to him, investors are increasingly looking for signs of diplomatic progress after the conflict entered its fourth month, while domestic participants are also tracking the resumption of India-US trade negotiations for potential support to sentiment.
FMCG, Financials Lead Market Decline
The selloff was broad-based, with FMCG and financial stocks emerging as the biggest drags on benchmark indices. The Nifty FMCG index plunged 2.3%, making it the worst-performing sector of the day. Heavyweights such as Hindustan Unilever and ITC came under significant pressure.
Financial stocks also witnessed heavy selling. The Nifty Financial Services index declined 1.36%, while Nifty Bank fell 1.1%.
The Nifty Financial Services Ex-Bank index dropped more than 2%, reflecting weakness across NBFCs and non-bank financial companies. PSU banks also remained under pressure, with the Nifty PSU Bank index losing 1.85%.
Among the notable laggards were Kotak Mahindra Bank, Bajaj Finance, Bajaj Finserv, Axis Bank, SBI and ICICI Bank. Auto stocks also came under pressure, with the Nifty Auto index declining 1.7%.
IT Stocks Buck The Trend
Technology shares remained the lone bright spot in an otherwise weak market. The Nifty IT index gained 2.66%, supported by strong buying in Infosys, Tech Mahindra, TCS and HCLTech.
Infosys surged 3.7%, while Tech Mahindra advanced 3.8%. TCS gained nearly 2%, helping limit losses in the benchmark indices. The sector continued to benefit from positive global technology sentiment and optimism surrounding artificial intelligence-led spending.
Broader Markets Underperform
The weakness was even more pronounced in the broader market. The Nifty Midcap 100 index declined 1.45%, while Nifty Midcap 150 lost 1.36%. Small-cap stocks also ended lower, with Nifty Smallcap 100 falling 0.88% and Nifty Smallcap 250 declining 0.79%.
Nair said investors shifted towards relatively attractive large-cap opportunities amid heightened uncertainty.
“The Nifty Mid and Smallcap underperformed, as investors moved towards relatively better-valued opportunities in large-cap equities, seeking stability amid global uncertainties,” he added.
Crude Oil Remains A Key Concern
According to Ponmudi R, CEO of Enrich Money, geopolitical developments continued to dominate investor sentiment. He said renewed tensions between the US and Iran and the continued closure of the Strait of Hormuz have intensified concerns over global energy supplies.
The resulting spike in crude prices has become a major concern for India, one of the world’s largest energy importers.
International crude oil prices climbed close to $91 per barrel during the session, while domestic crude futures also witnessed strong gains, raising fears about inflationary pressures and their impact on economic growth.
Volatility Rises
Reflecting growing investor nervousness, India VIX rose 2.2% to 16.54. The rise in volatility suggests traders are bracing for potential market swings ahead of crucial domestic and global developments.
RBI Policy, GDP Data In Focus
Market participants will now turn their attention to the RBI Monetary Policy Committee meeting and upcoming GDP data, to be released on Friday.
Nair said these would be the key domestic triggers that could determine the market’s near-term direction.
The central bank’s commentary on inflation, growth and the impact of rising crude oil prices will be closely watched by investors.
Technical Outlook
Ponmudi R said the Nifty’s break below the crucial 23,500 level has weakened the near-term market structure. “The index failed to witness any meaningful recovery after the initial decline, reflecting continued bearish sentiment and weak market breadth,” he said.
He expects the 23,500 level to act as immediate resistance, followed by a stronger hurdle in the 23,600-23,750 zone. On the downside, the next important support lies around 23,300-23,250. A breach of this zone could open the door for a decline towards the 23,000 mark.
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