Markets fall for 3rd day: Sensex declines 700 pts, Nifty below 24,550 as auto, bank stocks dent sentiment

Apollo Hospital, Bajaj Finserv, Coal India, Maruti Suzuki, and Adani Ports.

Benchmark indices Nifty and Sensex extended their losing streak for a third straight session on June 3, weighed down by weakness in auto, banking, and IT stocks. However, gains in metal stocks and steady resilience in the smallcap index helped cushion the decline and prevent a steeper fall.

At about 1 pm, the Sensex was down 709.18 points or 0.87 percent at 80,664.57, and the Nifty was down 193.00 points or 0.78 percent at 24,523.60. About 1704 shares advanced, 1740 shares declined, and 128 shares remained unchanged.

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The selloff deepened after the Organisation for Economic Cooperation and Development (OECD) on Tuesday projected that U.S. economic growth will slow to just 1.5 percent in 2026. The agency also noted that trade policies under Donald Trump have pushed average U.S. tariff rates up from around 2.5 percent to 15.4 percent — the highest level since 1938. These elevated tariffs are expected to increase costs for both consumers and American manufacturers that depend on imported raw materials and components.

On a global scale, the OECD expects economic growth to slow to 2.9 percent this year and remain at that level through 2026, down from 3.3 percent in 2024 and 3.4 percent in 2023.

"With a lot of uncertainty in geopolitics, tariffs, and trade, the market will continue to remain volatile. The concern in the market now is the high valuation, particularly in the broader market. But the trends in money flows into the market and the healthy trend of retail investors persisting with their investment for longer periods indicate that Indian equities will remain at higher valuations for an extended period," V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said. "Since the MPC is expected to cut policy rate by 25 bp in the policy meet on 8th, rate-sensitive sectors are likely to be favoured in the coming days," he added.

On the NSE, most sectoral indices traded lower, with Nifty Private Bank slipping 1.24 percent and Nifty PSU Bank down 0.87 percent. The broader Nifty Bank index declined 0.69 percent, while Nifty IT and Nifty Energy fell 0.75 percent and 0.83 percent, respectively. Nifty Auto and Nifty Consumer Durables also saw losses, dropping 0.40 percent and 0.54 percent. FMCG and Infrastructure indices were down by 0.62 percent and 0.67 percent, while Nifty Media was nearly flat, down just 0.08 percent. On the upside, Nifty Realty gained 1.49 percent, followed by modest gains in Nifty Metal (0.22 percent) and Nifty Smallcap 100 (0.13 percent). The India VIX rose 3.09 percent to 17.69, reflecting increased market volatility.

Pure-play EV two-wheeler Ola Electric Mobility Ltd shares sank over seven percent after a large block deal involving shares worth Rs 731 crore took place in the morning session on Tuesday, June 3. Around 14.22 crore shares, which amounts to 3.23 percent equity, exchanged hands at Rs 51.4 per share. This implies a discount from the previous session's closing price of Rs 53.68 apiece. According to sources, Hyundai Motor India may be the likely seller in the Ola Electric block deal.

Shares of Adani Group firms fell between 1 percent and 2.5 percent on June 3, a day after the Wall Street Journal reported that US prosecutors were investigating whether Adani group companies imported Iranian LPG into India through their Mundra port in Gujarat. An Adani spokesperson called the report "baseless and mischievous" in a statement, adding: "We are not aware of any investigation by US authorities on this subject."

Shares of Zinka Logistics Solutions staged a sharp rebound on Tuesday, June 3, erasing early losses of over 4 percent to trade more than a percent higher by midday. The recovery came after a hefty block deal worth Rs 692 crore, in which nearly 9.22 percent of the company’s equity, or around 1.63 crore shares, changed hands at Rs 423 apiece.

The dip towards the 24,500 zone and the subsequent recovery played out largely as expected. However, the index remains stuck in the middle of a sideways range that has persisted since early May. The upper end of this consolidation band—between 24,770 and 24,850—continues to pose resistance to any upward move. That said, the long lower wick on yesterday’s candle signals bullish intent, suggesting a potential breakout if declines stay limited above 24,650. Sustained strength from current levels is key to keeping the medium-term target of 25,460–26,200 intact. Immediate support lies in the 24,500–24,060 zone.

Grasim, Hindalco, Shriram Finance, Bajaj Auto, and M&M were the top gainers on the Nifty. Laggards on the index included Apollo Hospital, Bajaj Finserv, Coal India, Maruti Suzuki, and Adani Ports.