The Indian stock market showed mixed performance on Tuesday, June 3, with NIFTY50 gaining 0.19% or 41.85 points to 23,426.15 and BSE Sensex rising 0.35% or 261.78 points to 74,526.12. According to NSE data, out of the 50 index constituents, 10 stocks closed in green while 40 stocks ended with losses. Despite the overall market decline on Monday, several IT and mining stocks continued their positive momentum, with Tech Mahindra leading gains at 2.44% for the third consecutive session. The market weakness was attributed to mixed global cues and foreign outflows, creating a challenging environment for most sectors, though recent market dynamics suggest domestic institutional investors provided counter-buying support.
Market analysts have identified Infosys as a key buy opportunity in the IT services sector. According to Shrikant Chouhan, Executive VP & Head Equity Research (Technical & Derivatives) at Kotak Securities, the IT services major shows positive price action. He recommends a buy at current market price with a target of ₹1,250 and advises traders to maintain a stop loss at ₹1,180. The stock's strong performance on Monday, gaining 3.6%, validates this bullish outlook and demonstrates the continued investor confidence in the IT sector despite broader market weakness. Recent market sentiment suggests that concerns about potential Q1 FY27 earnings decline may be overblown, providing additional support for IT sector stocks.
Tech Mahindra has demonstrated exceptional resilience, soaring 2.44% for the third consecutive session and currently trading at ₹1,580.8 as of 12:49 IST on Tuesday. The stock has shown remarkable strength with 7.42% gains in the last one month and 2.4% year-on-year growth compared to a 4.55% fall in NIFTY and 15.51% decline in the Nifty IT index. The stock's volume stood at 28.26 lakh shares today, significantly higher than the daily average of 24.3 lakh shares in the last one month, indicating increased investor interest. Amit Goel, CMT, SEBI RA, Partner & Co-Founder at BlueOak Wealth, recommends a buy at current market price of ₹1,510 for an upside target of ₹1,663 with a stop loss at ₹1,495.
The mining sector presented compelling opportunities with NMDC leading midcap gainers at 6.3% on Monday's trading session. Gaurav Sharma, Associate VP & HOR at Globe Capital, recommends NMDC at current market price of ₹93.7 with an upside target of ₹100 and a stop loss at ₹89. Additionally, National Aluminium Co. gained 2.8% and Coal India rose 3.3%, with Ajit Mishra, SVP of Research at Religare Broking, maintaining his buy recommendation on Coal India at ₹473 for a target of ₹505 and a stop loss at ₹455. The sector's strong performance reflects positive momentum in the energy and resources space, with recent market dynamics showing that domestic institutional investors were able to provide support during periods of foreign fund selling pressure.
The public sector construction segment showed continued momentum with NBCC gaining 4.3% on Monday's session. Gaurav Sharma of Globe Capital highlights the sector with a buy call on NBCC at current market price of ₹104 for upside targets of ₹108 and ₹114. He advises traders to maintain a strict stop loss at ₹99 to protect the position. The stock's 4.3% gain demonstrates sustained investor interest in the construction sector, particularly in public sector companies, with recent market analysis suggesting that domestic institutional support helped offset foreign fund selling pressure.
