Sensex Recovers 850 Points From Low, Ends Down 304; Nifty Closes Near 23,400

Last Updated:June 03, 2026, 3:45 PM IST

The Sensex declines 303.67 points, or 0.41 per cent, to close at 74,346.17, while the Nifty 50 falls 77.95 points, or 0.33 per cent, to settle at 23,405.60.

Stock Market Today.

Market Updates Today: The domestic equity market staged a strong recovery from intraday lows on Wednesday, with benchmark indices trimming a large part of their early losses amid value buying and a rebound in banking stocks. The recovery helped the market shrug off a steep selloff in information technology shares that had rattled sentiment in the first half of the session.

The Sensex declined 303.67 points, or 0.41 per cent, to close at 74,346.17, while the Nifty 50 fell 77.95 points, or 0.33 per cent, to settle at 23,405.60.

The market’s turnaround was notable considering that the Nifty had slipped to an intraday low of 23,151.50 while the Sensex had fallen to 73,492.60 earlier in the day. Both indices recovered substantially during afternoon trade as buyers emerged near key support levels.

Banks Lead Recovery

The rebound was driven largely by financial stocks, which offset a sharp decline in technology counters. The Nifty Bank index surged 0.88 per cent to 54,185.95 after recovering more than 1,150 points from its intraday low. The Nifty Private Bank index gained 0.70 per cent, while the Nifty PSU Bank index jumped 1.70 per cent.

Among Sensex constituents, SBI rose 1.64 per cent, followed by IndiGo, ICICI Bank, Power Grid, Kotak Mahindra Bank and HDFC Bank.

IT Stocks Remain Under Pressure

Technology stocks remained the biggest drag on the market throughout the session. The Nifty IT index plunged 5.57 per cent as investors booked profits after the sector’s recent rally. TCS slumped 8.30 per cent, while Tech Mahindra dropped 6.37 per cent, HCLTech fell 5.37 per cent and Infosys declined 4.07 per cent.

The sharp correction in IT overshadowed gains in banking and select defensive sectors and prevented the benchmarks from moving into positive territory.

Broader Markets Show Resilience

Broader market indices outperformed the benchmark indices despite the volatility. The Nifty Smallcap 100 was down just 0.11 per cent, while the Nifty Smallcap 250 gained 0.05 per cent. The Nifty Microcap 250 advanced 0.24 per cent, reflecting continued participation from retail investors.

Healthcare stocks also witnessed buying interest, with the Nifty Healthcare Index rising 0.54 per cent and the Nifty 500 Healthcare Index gaining 0.60 per cent.

Volatility Eases

India VIX, the market’s fear gauge, moderated from intraday highs though it remained elevated. The index was up 6 per cent at 16.28, indicating that investor caution persists amid geopolitical tensions and concerns over crude oil prices.

Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth, said the market witnessed another highly volatile session as geopolitical concerns, elevated crude prices and a sharp selloff in IT stocks weighed on sentiment during the first half of the day.

“However, the tone changed meaningfully after 12 PM. As the index approached the crucial 23,150–23,200 support zone, strong buying interest emerged, triggering aggressive short covering and helping the market recover a large portion of its intraday losses,” he said.

According to him, the rebound was further supported by strength in banking and financial stocks, where domestic institutions stepped in at lower levels.

Commenting on the IT selloff, Hariprasad said the sector witnessed intense profit booking after a strong three-day rally as investors reassessed global technology growth expectations.

“Concerns around a higher-for-longer US interest rate environment, softer tech spending trends, and the long-term impact of AI-led automation on traditional outsourcing models continued to weigh on sentiment. The sharp decline in TCS highlighted that institutional investors remain cautious despite valuations becoming increasingly attractive,” he said.

He added that the session once again demonstrated the resilience of domestic liquidity, with buyers repeatedly emerging near important support levels and preventing deeper market corrections despite global uncertainties.

The day’s trade also highlighted continued sector rotation, with investors shifting capital toward segments offering stronger earnings visibility while reducing exposure to sectors facing structural challenges.

About the Author

Mohammad HarisDeputy News Editor (Business)

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More

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