The Nifty Index Surpasses 23,400, While the BSE Sensex Concludes at a 304-Point Loss, with IT Sector Dragging

Indian Equities End Lower on June 3 Amid Crude Oil Price Spike and U.S.-Iran Uncertainty

The Indian equities market experienced a volatile session on June 3, erasing the previous day's gains as the Nifty50 slipped below the 23,200 mark intraday. The market's losses were fueled by a spike in crude oil prices and uncertainty surrounding a potential U.S.-Iran peace deal.

The market started weakly, with the Nifty hitting its day's low of 23,151.50, before recovering some losses in the mid-session, particularly in auto and banking stocks. At close, the Sensex was down 303.67 points or 0.41 percent at 74,346.17, and the Nifty was down 77.95 points or 0.33 percent at 23,405.60.

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The losses were led by TCS, Tech Mahindra, HCL Technologies, Infosys, and Wipro, while gains were seen in Apollo Hospitals, Max Healthcare, Tata Motors Passenger Vehicles, SBI, and ICICI Bank. The IT index shed 5.5%, FMCG and realty indices slipped 1% each, and Consumer Durables fell 0.8%. Conversely, the Telecom index rose 2%, PSU Bank index jumped 1.7%, and the healthcare index was up 0.5%.

More than 100 stocks touched their 52-week high on the BSE, including Apar Industries, IFCI, Vodafone Idea, Chennai Petro, HFCL, Federal Bank, Welspun Corp, JK Bank, NMDC, Technologies India, PTC Industries, ACME Solar, and others.

Among individual stocks, John Cockerill India surged 20% to hit a 52-week high after securing an order worth ₹1,250–1,300 crore. Advait Energy Transitions gained 5% after signing a Battery Energy Storage Purchase Agreement (BESPA) with Gujarat Urja Vikas Nigam Ltd (GUVNL). Bliss GVS Pharma also hit a 52-week high after its Palghar manufacturing facility received an Inspection Closure Report from the World Health Organization (WHO), while Concord Biotech rose 2.5% following USFDA approval for Mycophenolate Mofetil for Oral Suspension USP.

NHPC advanced 3.5% as retail bidding opened after its oversubscribed Offer for Sale (OFS). On the other hand, Lenskart Solutions slipped 1.5% after 3.25% equity changed hands in a large block deal.

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

Market Outlook for June 4

According to Rupak De, Senior Technical Analyst at LKP Securities, the index recovered smartly during the day but failed to reclaim the 20 EMA on the hourly chart, keeping the possibility of another decline alive. A lower-top, lower-bottom formation is visible on the hourly timeframe, indicating a bearish trend in the recent price structure.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, stated that Nifty opened with a gap-down and extended its decline in the first half of the session. However, strong buying interest emerged at lower levels, helping the index recover sharply from the day's lows and recoup most of its intraday losses. Nifty eventually closed at 23,406, down 0.33%.

Going ahead, the immediate resistance for Nifty is placed in the 23,530-23,550 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 23,700, followed by 23,950 in the short term. On the downside, the immediate support for Nifty is placed in the 23,270-23,250 zone.