Sensex also ended lower, falling 303.66 points, to close at a weaker level.
Gaurav Garg,
Research Analyst,
Lemonn Markets Desk
Mumbai, 3 June 2026: The Indian stock market closed on a cautious note today, with the Nifty 50 settling at 23405.6 lower by -77.95 points or -0.33%. The session was characterized by the falling wedge , as the index opened at 23415.95, reached a high of 23459.65, and touched a low of 23151.5. The Sensex also ended lower, falling -303.66 points, to close at a weaker level.
Sectoral performance remained mixed with buying interest concentrated in banking and healthcare-related segments. PSU Bank emerged as the best-performing sector, supported by strong gains in public sector lenders, followed by Bank, Private Bank and Financial Services, which ended firmly in positive territory. Pharma, Healthcare and Midcap Healthcare indices also witnessed selective buying and closed higher. On the other hand, IT witnessed the sharpest decline amid broad-based weakness in technology stocks, followed by Realty, Cement, FMCG and Media, reflecting profit booking across several domestic-facing sectors. Metal, Construction, Auto and Oil & Gas also ended in the red, keeping overall market breadth subdued despite strength in financial stocks.
On the fundamental front, market sentiment remained mixed as investors weighed the impact of elevated crude oil prices, ongoing geopolitical uncertainties in the Middle East, and sustained foreign institutional investor (FII) outflows ahead of the RBI policy announcement later this week. After a cautious start to the session, the market witnessed a sharp rebound from lower levels, aided by short-covering activity and selective buying in fundamentally strong stocks. Nifty recovered strongly from the 23,300 zone and ended near the 23,550 mark, reflecting improved risk appetite during the latter half of the session. The rally was primarily led by IT stocks, which attracted buying interest on expectations of stronger AI-driven spending trends, a favorable global technology outlook, and reasonable valuations after the recent correction. Market participants will continue to track crude oil prices, geopolitical developments, RBI policy signals, and institutional flows for cues on the market's next direction..
