Benchmark indices experienced significant intraday volatility on Tuesday, with Nifty falling 118 points or 0.49% to close at 23,913.70 and Sensex dropping 479.25 points or 0.63% to settle at 76,009.70. According to latest reports, the decline came after profit booking erased early gains, with the Sensex falling over 600 points from the day's high. Sentiment turned cautious after hopes of a quick US-Iran peace deal weakened following fresh US strikes and comments suggesting negotiations could take longer. Despite the benchmark decline, the broader market showed resilience with BSE 150 MidCap Index adding 0.33% and BSE 250 SmallCap Index jumping 0.21%. Market breadth remained positive with 2,153 shares rising and 2,050 shares falling on the BSE, while NSE's India VIX fell 3.41% to 16.13, indicating reduced volatility expectations.
The primary driver of market volatility was the monthly expiry of Nifty 50 F&O contracts, which coincided with weekly expiry sessions. As reported by NDTV Profit, under the revised framework, monthly F&O contracts for Nifty, Bank Nifty, FinNifty, MidCap Nifty, Nifty Next 50, and single-stock derivatives now expire on the last Tuesday of the month instead of the earlier last-Thursday schedule. Such expiry sessions typically see heightened volatility, sharp price swings, increased liquidity, and rollover activity as traders unwind or roll over positions. The surge in volumes can amplify intraday volatility, leading to price movements that may temporarily diverge from broader market trends. Additionally, technical resistance near the 24,100-24,200 zone contributed to the decline as the market approached these key levels.
Metal and select FMCG stocks gained while consumer durables and private banks witnessed selling pressure. Major index drags included Bharti Airtel (down 1.49%), HDFC Bank (down 1.01%), and ICICI Bank (down 0.98%). In the earnings space, Marksans Pharma surged 15.68% after reporting strong Q4 FY26 results with net profit of ₹148.12 crore, up 63.60% YoY, while Uniparts India soared 8.55% following net profit of ₹51.15 crore, up 124.05% YoY. Blue Jet Healthcare rallied 3.77% after showing sequential improvement with net profit of ₹64.34 crore, up 60.17% QoQ. Suprajit Engineering surged 6.44% with consolidated net profit jumping 161.04% to ₹71.11 crore in Q4 FY26.
Asian and European indices edged lower on Tuesday as investors monitored developments in the Middle East and Ukraine, while volatility in crude oil prices kept sentiment cautious. Brent crude for July 2026 settlement dropped $4.77 or 4.61% to $103.54 a barrel, recovering part of recent losses. US Dow Jones futures were up around 258 points, indicating a positive start for Wall Street later in the day. US President Donald Trump said negotiations with Iran were proceeding nicely, but warned that the US could resume attacks if talks fail. The US markets remained closed on Monday due to Memorial Day holiday, with the previous session seeing the Dow Jones Industrial Average gain 294.04 points to close at a record 50,579.70.
In the foreign exchange market, the rupee edged lower against the dollar, hovering at 95.77 compared with its close of 95.26 during the previous trading session. The yield on India's 10-year benchmark federal paper advanced 0.19% to 7.038 compared with the previous session close of 7.025. MCX Gold futures for 5 June 2026 settlement fell 0.56% to ₹158,186. The US Dollar Index (DXY) was up 0.07% to 99.04, while the United States 10-year bond yield declined 1.71% to 4.495.
