Stock Market Today | Closing Bell: Was This A Market Crash? IT Sell-Off Drags Sensex Down 304 Points, Nifty Ends Lower

Stock Market Today, June 3 | Closing Bell: The Indian benchmark indices closed lower on Wednesday, June 3, but calling it a full-fledged market crash would be an overstatement. The headline indices eased back, but the real damage was to information technology stocks, which saw heavy profit-booking after Tuesday’s sharp rally.

The benchmark indices BSE and Nifty ended the day in red. The BSE Sensex closed at 74,346.17, down by 303.67 points, or 0.41%, while the NSE Nifty 50 ended with a cut of 0.33%, or 77.95 points, at 23,405.60. The Nifty touched an intraday low of 23151.50 before recovering around 250 points from the day’s lowest, signalling the return of buyers at lower levels.

What made the stock market decline today?

Heavy selling in IT stocks was the main reason for weakness today. The Nifty IT index was the biggest loser among the sectors, down 5.57%. Tech giants TCS, Tech Mahindra, HCLTech, Infosys, and Wipro shed a lot of their earlier-day gains under heavy selling pressure.

TCS was the largest weightage loser (8.25%), followed by Tech Mahindra (6.45%) and HCLTech (over 5%). Infosys and Wipro also shed significant gains. Analysts stated that this is mostly profit booking on technology names after a recent run-up, and there is no fundamental change in market sentiment.

Traders were wary of the policy outcome of the RBI MPC policy, which is due on June 5. As market players cut some of their aggressive bets, they closely watched rates, inflation, and growth guidance.

Bigger fall post-recovery from lows

Although IT names dragged the Dalal Street today, there was resilience in the broader market. Benchmark indices erased some of their losses as banks helped recovery.

The Nifty Bank index was trading up 0.88%, and PSU banks were up 1.7%. SBI was among the top gainers in the Nifty 50 pack. Healthcare stocks also attracted buying interest, with Apollo Hospitals and Max Healthcare closing among the day’s biggest gainers.

However, the market breadth remained negative as 2,318 stocks declined against 1,714 advances on the BSE.

Also Read: TCS Tanks 8%, Tech Mahindra, Infosys Lead Sell-Off – Why Are IT Stocks Falling Today?

Sector Watch

Top Losing Sectors

Top Gaining Sectors

Nifty 50 Top Gainers

Nifty 50 Top Losers

Not a market crash, but a sector rotation now comes into play ahead of RBI policy meet outcome

We did not witness a market crash today but saw a sector-specific correction, especially the IT stocks leading the show down. As Nifty bounced back sharply from its intraday low and banking stocks closed in strong green, it indicates a sector rotation play and not an exit from equities. The outcome of the RBI policy on June 5th would now be the next major event in Dalal Street.

(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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