Stock Market Outlook Today, June 1: GIFT Nifty Signals Positive Start—Will June Begin On A Strong Note For Dalal Street?

Stock Market Today On June 1, 2026: Indian stocks may have a slightly positive start to the month of June on Monday after a poor month for benchmarks last month. Early activity may focus on stocks as investors look to a string of earnings, corporate action, and international trends. The GIFT Nifty traded 0.05% higher at 23,705 as of 7:03 a.m. IST, pointing to a mildly positive start for the Nifty 50 and Sensex, even though traders are being wary following a significant correction last month.

Indian Markets End May On A Weak Note

It has been a rough month for Dalal Street. The Sensex dropped 2.8% in its worst May performance in six years, while the Nifty 50 declined 1.9% in its weakest May in four years.

Friday’s session showed the market’s volatility. At one stage, it went past the 24,000 level during the session. However, it subsequently fell as much as 1.8% to 23,484.75. A massive swing was also seen on the BSE Sensex, which closed significantly lower, shedding over 1,200 points from its high reached in the intra-day trading session.

Despite the decline, experts maintain that the overall market set-up remains cautiously optimistic as we move into June.

GIFT Nifty And Global Trends Would Assist Positive Bias

Positive trends from overseas bourses have supported the market mood. Wall Street closed with a gain on Friday at fresh highs. The Dow Jones gained 0.72% to settle at 51,032.46, while the S&P 500 was up 0.22% and the Nasdaq Composite was up 0.2%, respectively. All three gained on a closing basis at a new high in intraday trades.

Early trade on Monday saw Asian markets with mixed movement; the Kospi from South Korea rallied to a new record, and Japan’s Nikkei gained. However, global investors are on their toes watching geopolitical factors and the developing situation between the US and Iran.

A positive global backdrop and stronger GIFT Nifty futures levels seen late last week are helping keep a cautiously bullish tone for Indian equities.

IT Rally Still The Biggest Support For The Market

The sharp rebound in technology shares remains the biggest positive trigger for the market. The rally was led by Wipro’s strong performance of ADRs in the US following the company’s announcement of its strategic partnership with ServiceNow in the fast-growing agentic AI space.

Also Read: Wipro Shares Rally After ServiceNow AI Partnership — What’s Driving Investor Interest?

The change led to an all-round upswing in the IT stocks and cushioned the decline in other indices. Technology stocks led the Nifty, though there remained a pressure on metals, power and PSU banking names.

FII Selling Is A Huge Concern

While domestic institutional investors remain the supporters of the market, foreign institutional investors remain apprehensive.

The foreign institutional investors had offloaded more than Rs21,000 cr worth of shares in one session late last week, putting the month of May outflows at approximately Rs35,000 cr, while domestic institutional investors have been net buyers on a massive scale.

The spread between FII and DII activity is likely to remain one of the major themes for investors to watch in June.

Nifty 50 Outlook For 1 June

The outlook for the Nifty 50 remains cautiously bullish, said Ankit Jaiswal, senior research analyst, Univest. The index closed at 23,649.95 in the last session, recovering from steeper losses on the back of strength in IT stocks.

GIFT Nifty seems to be set for a positive opening around the 23,750-23,850 range, says Jaiswal. The first key resistance is placed at 23,850, whereas the initial support level is around 23,500. A sustainable move above 23,750 may further boost market sentiment and target the 24,000 level again.

Bank Nifty Outlook: Weakness Continues, Recovery Attempt

The banking index is still pretty weak against the broad market.

Bank Nifty had closed lower in the previous session as selling pressure was seen in PSU lenders amid concerns over monsoon forecasts and wider risk-off sentiment. But private-sector lenders continued to outperform.

Kunal Singla, Associate Director, Univest, said that the support levels of 52,699 and 52,181 are critical. Also, a comeback by leading private banks such as Kotak Mahindra Bank and Bajaj Finance could help stabilise sentiment in the banking space.

Oil Prices Back In The Spotlight

Oil prices recouped on Monday after a collapse in prices to their cheapest in six weeks in the session and last week. Brent is at around $93 a barrel, and WTI is trading close to $89.

Rising crude prices can be a significant driver for Indian markets, particularly for stocks sensitive to fuel costs and inflation assumptions. Markets will continue to keep an eye on the geopolitical situation in the Middle East.

What Investors Are Looking At Today

Investors are likely to be interested in IT stocks, banking names and stocks with new corporate announcements. Crude oil movement, institutional investor activity and global market trends will also continue to be key drivers.

June starts cautiously positive, with the sharp correction of May behind us and global sentiment having improved. However, if the rise is sustainable, only time will tell if domestic buying can make up for foreign sales and whether some leading segments, like banks, will follow the existing IT-led recovery.

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)

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