In the volatile session on June 3, benchmark equity indices ended lower to extend the losing streak for a third day, with Nifty 50 closing below 24,550 on selling across sectors barring realty.
At close, the Sensex was down 636.24 points or 0.78 percent at 80,737.51, and the Nifty was down 174.10 points or 0.70 percent at 24,542.50. Among broader indices, BSE Midcap shed 0.5 percent, while the smallcap index ended flat, while Nifty Bank slipped after hitting a record high of 56,161.
Among sectors, realty index rose by a percent, while bank, capital goods, consumer durables, IT, oil & gas, power, private bank, PSU bank indices down 0.5-1 percent.
Adani Ports, Bajaj Finserv, Adani Enterprises, Coal India, Power Grid were among major losers on the Nifty, while gainers included Grasim Industries, Shriram Finance, M&M, Bajaj Auto, Cipla.
A slew of block trades took the cash segment turnover to a near seven-month high on June 3.
Wall Street futures are lower on June 3, on softer dollar amid trade tensions with China and growth concerns ahead of US employment data. Asian markets ended higher on June 3, while European Indices were trading with little change.
In stock specific action, Ola Electric Mobility declined 7% as shares worth Rs 731 crore exchanged in block deal, with Hyundai Motor emerging as the likely seller.
Defence shares extend gains for a second day amid rising geopolitical tensions while Yes Bank’s shares tumbled 10% following a block deal that saw 3 percent equity change hands ahead of the board meet to consider fundraising.
More than 100 stocks on the BSE made their 52-week highs, including Garden Reach, Radico Khaitan, Deepak Fertilers, Authum Investment, Solar Industries, Bharti Hexacom, City Union Bank, HDFC AMC, Intellect Design, Indian Bank, among others. Click to View More
Prostarm Info Systems shares listed with 19% premium over IPO price, ending at Rs 126.05, up Rs 21.05, or 20.05 percent on the BSE.
Outlook for June 4
Ajit Mishra – SVP, Research, Religare Broking
Markets edged lower in a volatile trading session, losing over half a percent amid weak cues. After an initial uptick, the Nifty oscillated sharply in early trade; however, a sharp decline below the short-term moving average (20 DEMA) in the latter half of the session kept the tone negative. Eventually, it closed near the day’s low at the 24,539 level. On the sectoral front, most key sectors ended in the red, with energy, financials, and IT among the top losers. The broader indices showed a mixed trend — the smallcap index closed almost flat, while the midcap index lost nearly half a percent.
The ongoing foreign fund outflows, coupled with weak global cues such as geopolitical tensions and uncertainty over trade deals, are adding pressure to the markets. Notably, the Nifty has decisively breached its short-term support zone (20 DEMA) for the first time in nearly one and a half months, which may lead to further downside toward the 24,200–24,400 zone. However, the relatively stronger performance in the banking space could help limit the pace of decline. We recommend maintaining caution in stock selection and trade management in the current environment.
Rupak De, Senior Technical Analyst at LKP Securities
The Nifty has extended its consolidation phase for yet another day, showing no urgency in establishing a clear directional trend. It appears that investors are awaiting a decisive commentary following the RBI's interest rate decision. Technically, very short-term support is placed at 24,500. A fall below this level may trigger an increase in short positions, potentially leading to a swift decline towards 24,000. On the other hand, if the Nifty holds above 24,500, it could see a recovery towards the 24,700–24,750 zone in the near term.
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