Sensex Surges 383 Points, Nifty Crosses 23,400 Amid IT Share Rally

Indian Benchmark Indices End Higher Amid Broad-Based Buying

Indian benchmark indices, the Nifty 50 and the Sensex, ended higher on June 2, with the Nifty 50 closing above the 23,450 mark, supported by broad-based buying across most sectoral indices.

The market remained range-bound during the first half of the session, with concerns over an unfavourable monsoon forecast, escalating tensions in the Middle East, and caution ahead of the Reserve Bank of India's upcoming monetary policy decision. However, buying interest strengthened in the afternoon, helping the Nifty 50 rebound sharply from its intraday low of 23,229.15. The index later climbed to a high of 23,556.95 before settling near the day's peak.

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The Sensex was up 382.50 points or 0.52 percent at 74,649.84, while the Nifty was up 100.95 points or 0.43 percent at 23,483.55. About 2,222 shares advanced, 1,803 shares declined, and 165 shares remained unchanged.

Broader markets also participated in the rally, with the Nifty Midcap 100 index rising 0.2 percent and the Nifty Smallcap 100 index advancing 0.4 percent. The rally was led by heavyweight IT counters, with TCS, Infosys, HCL Technologies, and Tech Mahindra emerging as the top gainers on the Nifty. Adani Enterprises also featured among the major advancers.

On the sectoral front, the Nifty IT index surged 4.3 percent, and buying was also visible in PSU banks, auto, metal, consumer durables, and realty stocks, with these indices gaining between 0.5 percent and 1 percent. However, pharma, healthcare, and power indices bucked the trend, declining between 0.3 percent and 0.8 percent.

More than 100 stocks touched their 52-week high on the BSE, including ACME Solar, IFCI, PTC Industries, HFCL, NMDC Steel, and NMDC, among others. Among individual stocks, NMDC surged more than 2 percent after reporting a 19.9% year-on-year increase in iron ore production for May. PNC Infratech gained 1.3% after receiving a Letter of Acceptance worth Rs 194.4 crore from the Lucknow Development Authority, while DEE Development Engineers advanced 5% after securing fresh orders worth Rs 206.55 crore.

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On the other hand, Force Motors declined 5.4% after reporting a 15.35 percent year-on-year drop in May sales. NHPC slipped nearly 6.8% as the government announced plans to divest up to a 6% stake in the company through an offer-for-sale (OFS). Ola Electric Mobility rose 1.7% after launching its qualified institutional placement (QIP).

The market outlook for June 3 suggests a positive trend, with the IT index outperforming and the pharma index shedding nearly 1 percent. Technically, the market has formed a promising reversal pattern, and on daily charts, a bullish candle has formed, indicating a further uptrend from the current levels. The immediate support levels for day traders are 23,300/74,000 and 23,220/73,800.