Indian equity benchmarks ended their four-day losing streak on Tuesday, with the NSE Nifty 50 rising 0.43% to close at 23,483.55 and the BSE Sensex gaining 0.52% to end at 74,649.84. According to reports from NDTV Profit and HDFC Securities, the rally was driven largely by heavyweight technology stocks, which emerged as the biggest gainers amid improving sentiment toward the sector globally. Market breadth remained positive with 2,222 stocks advancing against 1,803 declines, while 165 stocks remained unchanged. The gains marked a reversal from recent weakness and helped the benchmarks snap a four-session losing streak. As per StockGro, the broader market showed modest gains with the Nifty MidCap index up 0.18% and the Nifty SmallCap index rising 0.40%, indicating continued investor interest across market segments.
The BSE Information Technology sector was the top performer, surging 4.23% on the back of strong gains in heavyweight IT stocks. As reported by HDFC Securities, investor sentiment towards the sector has improved in recent sessions following a rebound in global software stocks and growing confidence that Indian IT companies could benefit from increasing enterprise spending on AI, cloud computing and digital transformation. TCS emerged as the standout gainer, surging 6.5% on renewed investor interest, while Infosys led the charge with a 5.7% gain. Newgen Software topped small caps with a remarkable 17.52% jump, demonstrating broad-based strength across IT sub-segments. The gains were backed by strong volumes, recovering momentum indicators, and optimism following positive results from US cloud software companies like Snowflake. Adani Enterprises also featured among the index's leading gainers.
While technology stocks led the advance, several defensive sectors remained under pressure. According to HDFC Securities, NTPC, Power Grid Corporation, Axis Bank, Dr. Reddy's Laboratories and HDFC Life Insurance were among the biggest laggards on the Nifty. The Nifty Pharma, Healthcare and Power indices declined between 0.3% and 0.8%, limiting the broader market's gains. However, other sectoral indices also posted gains, with PSU banks, automobiles, metals, consumer durables and realty stocks advancing between 0.5% and 1%. As per StockGro, Nifty Consumer Durable, Nifty Auto, and Nifty FMCG also outperformed, with United Breweries leading FMCG gains with a 2.87% rise and other notable performers including Varun Beverages, United Spirits, ITC, and Tata Consumer Products advancing 1-2%. Investors continued to rotate money into sectors perceived to have stronger earnings momentum, while some profit-taking emerged in defensives that had outperformed during recent bouts of market volatility.
The positive sentiment extended beyond frontline stocks, with broader markets also ending in the green. As reported by NDTV Profit, the Nifty Midcap 100 index rose 0.2% while the Nifty Smallcap 100 gained 0.4%, indicating continued investor interest in the broader market despite lingering macroeconomic concerns. The CMR Green Technology IPO is set to open on June 3, 2026, with shares priced between ₹182 to ₹192 and a total issue size of ₹631 crore. In bulk deals, Alkem Laboratories saw significant trading activity with multiple institutional investors participating, while Bajaj Electricals witnessed substantial block deals with various investors buying and selling shares at ₹320.5 per share. Among capitalisation segments, the S&P BSE 250 Smallcap index rose 0.5%, the BSE 100 Largecap index gained 0.47%, and the S&P BSE 150 Midcap index increased 0.33%, with midcaps trading largely flat indicating selective buying interest.
Despite the gains, the Nifty remains below its 50-day moving average (DMA), which itself is trading below the 200 DMA, signalling a cautious medium-term technical outlook. The market's upward momentum was primarily driven by mega-cap stocks, which outperformed smaller peers, with out of 38 sectors tracked, 24 advanced while 14 declined. The advance-decline ratio across the BSE 500 was a healthy 1.48x, with 297 stocks advancing against 201 declining, underpinning the market's resilience. Foreign institutional investors (FIIs) continued to support the market with steady inflows, while domestic institutional investors (DIIs) also maintained buying interest, providing a balanced demand-supply dynamic. Global markets showed mixed tone with US indices edging higher amid positive economic data, while Asian markets were subdued due to concerns over inflation and geopolitical tensions. Investors are eyeing upcoming quarterly results, including Bagmane Prime RE scheduled for June 3, 2026, with earnings announcements expected to provide further direction to the market.
