Stock Market Dips For Third Straight Day; Broader Indices Show Strength

In a notable move, the Nifty Bank index briefly touched a new record high in early trade before reversing gains and slipping into negative territory

In the previous session, Indian equities ended slightly lower after briefly staging a recovery

Source : ABPLIVE AI

India benchmark indices Nifty and Sensex extended their losing streak into a third consecutive session on June 3, dragged down by early selling in banking, FMCG, and IT stocks. However, the broader market defied the trend, once again outperforming the main indices and showing underlying strength.

In a notable move, the Nifty Bank index briefly touched a new record high in early trade before reversing gains and slipping into negative territory.

As of 10:20 am, the Sensex slipped 332.44 points, or 0.41 per cent, to 81,041.31, while the Nifty declined 94.65 points, or 0.38 per cent, to 24,621.95. Market breadth remained slightly positive, with 1,863 stocks advancing, 1,219 declining, and 154 remaining unchanged.

In the previous session, Indian equities ended slightly lower after briefly staging a recovery, as late-session selling dragged the indices back into negative territory. Sentiment took a hit due to weakness in IT, metal, pharma, and oil & gas stocks. However, the broader market continued to show strength, with mid- and small-cap stocks rebounding sharply to close in positive territory after a weak start.

"Supportive domestic macro indicators include a potential RBI rate cut, a better monsoon, Q4 GDP data, and better GST collection. Under the current market landscape, investors are adopting a cautious short-term strategy, with a focus on domestically oriented and interest-sensitive sectors," said Vinod Nair of Geojit Investments Limited.

Sectorial Update

On the NSE sectoral front, market volatility edged higher as India VIX rose 1.5 per cent to 17.42. Among the gainers, the Nifty Smallcap 100 and Nifty Metal indices stood out, advancing 0.55 per cent and 0.42 per cent, respectively. Nifty Midcap 100 and Nifty Oil & Gas also registered solid gains. Realty and PSU Bank indices posted modest upticks of 0.22 per cent and 0.17 per cent.

On the flip side, Nifty Private Bank dropped 0.7 per cent, weighing on the Nifty Bank, which slipped 0.29 per cent. Other sectors, including FMCG, IT, infrastructure, and pharma, ended with slight losses, reflecting a cautious and mixed tone in the broader market.