Indian Equity Markets Post Decline, Nifty Falls Below 23,400

Indian Benchmark Indices End Lower for Fourth Consecutive Session

June 1, 2023 - Indian benchmark indices, the Sensex and Nifty, ended lower for the fourth consecutive session on June 1 as investors closely monitored developments surrounding the ongoing US-Iran negotiations.

The market failed to sustain its opening gains and witnessed choppy trading during the first half of the session. Selling pressure intensified in the latter half, dragging the Nifty to an intraday low of 23,357.95 before the benchmark settled near the day's low.

At close, the Sensex was down 508.40 points or 0.68 percent at 74,267.34, and the Nifty was down 165.15 points or 0.70 percent at 23,382.60. About 1505 shares advanced, 2665 shares declined, and 180 shares remained unchanged.

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Sectoral Performance

Broader markets also ended lower with Nifty Midcap and Smallcap indices down 1.4 percent and 0.9 percent, respectively.

Auto, power, FMCG, PSU Bank, Consumer Durables, and realty indices were down 1-3%, while the IT index was up 2.6%, the media index was up 1.3%, and the metal index was up 0.5%.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Stock-Specific Action

HUL, Tata Consumer, ITC, Shriram Finance, and M&M were among the major losers on the Nifty, while gainers included Tech Mahindra, Infosys, TCS, Coal India, and JSW Steel.

NMDC Steel shares surged nearly 13% after the company reported a profit in the March quarter. IndiGo advanced 1% despite reporting a loss in the fourth quarter. Wockhardt jumped 5% after receiving US FDA approval for its novel antibiotic, Zaynich. PNC Infratech rose 1% after securing an EPC contract worth ₹302.4 crore. Meanwhile, Escorts Kubota declined 2% despite reporting a 19% year-on-year increase in May sales.

Persistent Systems gained 3.3% after signing an agreement to expand its presence in Eastern Europe, while Suzlon Energy fell 6% after SEBI imposed a penalty on the company over misleading financial statements.

Market Outlook

The market direction is likely to depend on RBI commentary and developments in West Asia. While India's economic fundamentals remain strong, volatility may persist in the near term as we remain cautious amid geopolitical and inflation-related uncertainties.