Indian stock markets closed in negative territory on Wednesday, June 3, 2026, with both benchmark indices posting significant declines. According to ET Now, the BSE Sensex dropped 303.67 points, or 0.41 percent, to settle at 74,346.17, while the NSE Nifty declined 77.95 points, or 0.33 percent, to end at 23,405.60. The index witnessed sharp intraday swings during the session, with the Sensex tanking as much as 1,157.24 points, or 1.55 percent, to 73,492.60 during the day's low. The decline came despite strong buying interest that emerged near lower levels during the second half of the session, helping the index recover from intraday lows. Market breadth remained weak with 2,400 stocks declining, while 1,812 advanced and 174 remained unchanged on the BSE, indicating broad-based selling pressure across the market.
IT stocks emerged as the primary driver of market decline, with the sector showing sharp performance amid profit-taking after rallying in the past few days. As reported by ET Now, Focused IT tanked 5.24 percent, IT declined 5.01 percent, Realty fell 1.52 percent, FMCG dropped 0.92 percent, Consumer Durables declined 0.53 percent, and Utilities fell 0.35 percent. Among 30 Sensex firms, Tata Consultancy Services tumbled 8.43 percent, followed by Tech Mahindra (6.23 percent), HCL Tech (5.25 percent) and Infosys (3.82 percent). The sharp decline in IT stocks weighed heavily on the broader market sentiment, while Telecommunication jumped 2.04 percent, PSU Bank rose 1.75 percent, Bankex gained 0.91 percent, Hospitals increased 0.90 percent, Top 10 Banks rose 0.80 percent, and Private Banks Index gained 0.70 percent. Sectoral performance on Wednesday, June 3 showed that BSE MidCap Select index declined 0.73 percent and SmallCap Select index dipped 0.15 percent.
Maruti, Adani Ports, Asian Paints and Bharti Airtel were the gainers from the blue-chip pack, providing some support to the broader market despite IT sector weakness. According to ET Now, Maruti, Adani Ports, Asian Paints and Bharti Airtel were the top gainers from the blue-chip pack. Sectoral performance on Wednesday, June 3 showed that Telecommunication, PSU Banks, Private Banks, BANKEX, Top 10 Banks, and Hospitals witnessed buying interest and outperformed during the session. Banking stocks provided some support and helped the market recover from intraday lows, with the sector showing resilience amid the broader market decline. IT stocks fell sharply amid profit-taking after rallying in the past few days, indicating that the sector's recent momentum had reached exhaustion levels.
Market experts believe the robust recovery from lower levels indicates that buyers are actively defending key support thresholds, providing a critical ground for Thursday. According to ET Now, Vipin Dixena, SEBI-registered analyst, noted that Sensex is showing signs of stabilization after a sharp decline, with the index rebounding from the crucial 73,560 support zone and attempting to reclaim the 74,600 resistance area. Hitesh Tailor from Choice Broking said the index closed at 74,346.17, declining by 303.67 points (-0.41%), with the index opening gap-down by around 134 points at 74,507.73 and touching its intraday high of 74,515.65 during opening trade. From a technical perspective, the Sensex witnessed a sharp intraday decline but managed to recover strongly from the crucial 73,300–73,500 support zone, indicating buying interest at lower levels. The index continues to face resistance near the 74,800–75,000 zone, where selling pressure has emerged repeatedly in recent sessions, with a decisive move above this resistance area potentially improving short-term sentiment.
Brent crude, the global oil benchmark, jumped 3 percent to USD 98.92 per barrel, adding to market pressures amid ongoing geopolitical tensions. According to ET Now, Foreign Institutional Investors (FIIs) offloaded equities worth ₹8,362.92 crore on Tuesday, continuing the trend of foreign fund outflows. The US Trade Representative has proposed slapping 12.5 percent additional duties on 54 countries, including India, for failing to prohibit the import of goods produced with forced labour. On Wednesday, Wall Street opened on a mixed note as investors awaited more clarity on the West Asia conflict front and crude oil prices rose. The Dow Jones gave up over 230 points at open to trade 0.46% lower at 51,069.62, S&P 500 remained muted during open, and was trading 0.10% lower at 7,602.5, and the tech-heavy Nasdaq Composite at 27,102.16 levels, up by 0.03%. The currency market saw the rupee weaken by 31 paise to settle at 95.67 against the US dollar (provisional) on Wednesday, pressured by the US Trade Representative's proposal.
