IT Rally Helps Indian Equities Recover After Four-Day Slide

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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India Shares rise

By Dehuti Jani

June 2, 2026 at 11:32 AM IST

Indian equity benchmarks rebounded on Tuesday after four consecutive sessions of losses, supported by value buying, strength in information technology stocks and easing crude oil prices. The Nifty50 rose 0.43% or 100.95 points to close at 23,483.55, while the BSE Sensex gained 0.52% or 382.50 points to settle at 74,649.84.

The recovery followed a nearly 3% decline over the previous four sessions, driven by heightened geopolitical tensions in West Asia and heavy foreign investor selling. Investor sentiment improved after Donald Trump said talks with Iran were still ongoing, easing concerns after earlier reports suggested Tehran had suspended negotiations with Washington. Falling Brent Crude prices also supported sentiment, with crude declining around 1.3% toward $93.7 per barrel, offering some relief to import-dependent economies such as India.

Technology shares led the gains, with Tata Consultancy Services, Infosys and HCL Technologies emerging as the top gainers on the Nifty50 index. Consumer durable, auto and FMCG stocks also outperformed, while pharma and healthcare shares lagged.

Broader markets also ended higher, with the Nifty MidCap and Nifty SmallCap indices gaining 0.18% and 0.40%, respectively. Investors additionally monitored ongoing trade negotiations between India and the US, with a US delegation led by Assistant US Trade Representative Brendan Lynch holding discussions in New Delhi regarding the first tranche of a bilateral trade agreement.

Top Movers of the Day

TCS surged about 6.6% to roughly ₹2,451 as heavyweight IT stocks led the recovery, with the counter rebounding nearly 10% in just two sessions on renewed optimism around artificial‑intelligence‑driven demand.

Infosys jumped around 5.7% to about ₹1,270, extending a three‑day rally of roughly 10% as traders piled back into large‑cap tech after the recent correction, supported by a softer rupee and strong volumes.

HCL Technologies gained a little over 4% to near ₹1,244.90, helping the Nifty IT index climb more than 4% as investors sought export‑oriented defensives while India VIX eased and broader risk sentiment improved.

Tech Mahindra advanced about 1.7% to roughly ₹1,570, adding to last week’s gains as the market continued to reward IT names exposed to enterprise digital and AI transformation themes.

JM Financial climbed over 8% to about ₹129, its sharpest rise in nine months, as heavy volumes and a bounce from near 52‑week lows fuelled renewed interest in the financial‑services stock.

Cyient DLM rallied over 7% to roughly ₹465.55, with the shares trading more than 74% above their 52‑week low as improving sentiment around engineering and electronics manufacturing drew buyers back in.

DEE Development Engineers hit a 52‑week high near ₹656, locked at the 5% upper circuit, after winning a ₹2.07 billion order for critical piping assemblies, highlighting a robust order book in power‑equipment supplies.

NMDC rose about 2.8% to around ₹95 after reporting a nearly 20% year‑on‑year jump in May iron‑ore production to 5.31 million tonnes, even as sales volumes dipped versus last year.

Force Motors slumped about 5.3% to roughly ₹17,893 and touched a 52‑week low after May sales fell more than 15% year‑on‑year, with both domestic and export volumes weakening.

Wockhardt dropped nearly 8.3% to about ₹1,973, pausing an earlier 36% five‑session surge as investors locked in profits and pharma stocks broadly extended a three‑day decline.

Vedanta slipped over 1% to around ₹333.60 after reports that the Enforcement Directorate conducted searches at the group’s offices in Delhi and Mumbai, reviving regulatory concerns and dragging the stock to a 10‑day low.

Futures & Options
Nifty June 2026 futures closed at 23,605, a premium of 121.45 points over the spot Nifty 50 close of 23,483.55, indicating improving trader sentiment following the rebound in the cash market. In the cash segment, the Nifty 50 gained 100.95 points or 0.43%, while volatility eased sharply with India VIX declining 7.17% to 15.36 as geopolitical concerns moderated slightly and technology stocks advanced.

Among stock futures, Infosys, HDFC Bank and Tata Consultancy Services were the most actively traded contracts in the F&O segment of the NSE. The June 2026 derivatives series will expire on 30 June 2026.

Bonds
India’s government bond yields remained largely steady on Tuesday as investors stayed cautious ahead of the RBI’s monetary policy decision later this week, while geopolitical tensions in West Asia continued to influence sentiment. The benchmark 6.48% 2035 government bond yield ended at 7.0129%, after trading near 7.0171% earlier in the session. Traders largely avoided aggressive positioning ahead of key policy signals from the RBI regarding interest rates, liquidity conditions and inflation management.

Market participants also tracked upcoming debt supply, with Indian states raised ₹241 billion through bond sales during the session today. Attention is additionally focused on Friday’s central government auction, where New Delhi plans to issue the new 10-year 6.94% GS 2036 bond worth ₹340 billion.

Forex
Indian rupee weakened against the US dollar on Tuesday as persistent dollar demand from oil marketing companies, importer hedging activity and foreign portfolio outflows pressured the domestic currency. The rupee settled at 95.2650 per dollar compared with the previous close of 94.9900. The currency opened weaker at 95.0700 and remained under pressure through most of the trading session.

Traders said continued dollar demand from importers and oil companies, alongside foreign equity outflows, weighed on the rupee despite intervention by the Reserve Bank of India through state-run banks, which helped prevent sharper depreciation.

Crypto
Crypto markets remained cautious on Tuesday as investors continued to navigate volatile global macroeconomic conditions and geopolitical uncertainty in West Asia. Bitcoin traded near the $73,000-$74,000 range after suffering a correction of more than 20% from highs near $98,000 reached earlier this year. Traders remained defensive as broader financial markets continued to face pressure from elevated bond yields, oil price volatility and geopolitical tensions.

Ethereum traded near $1,977 and remained under pressure after prolonged weakness in the broader altcoin market. Some traders warned that Ethereum could test levels closer to $1,800 if selling pressure intensifies further, although long-term investors continued to maintain expectations of a future recovery cycle and renewed crypto bull market.

US Stock Futures
US stock futures traded lower early Tuesday after all three major Wall Street indices closed at fresh record highs in the previous session. Futures linked to the S&P 500 slipped around 0.17%, while Nasdaq-100 futures declined 0.1%. Futures tied to the Dow Jones Industrial Average fell roughly 0.37%.

Despite the softer futures performance, selective strength remained visible in technology shares. Hewlett Packard Enterprise surged around 26% after issuing stronger-than-expected quarterly guidance and raising its full-year outlook. The company also delivered its largest earnings beat since 2018, supporting sentiment around AI and enterprise technology spending trends.

US Treasury Notes
US Treasury yields moved lower in early Tuesday trading as softer oil prices and tentative diplomatic progress in West Asia reduced immediate inflation concerns and supported demand for bonds. The benchmark 10-year Treasury yield declined around 4 basis points to near 4.424%, partially reversing Monday’s rise toward 4.52%, which had followed stronger-than-expected inflation signals from the ISM manufacturing prices component.

Meanwhile, the policy-sensitive 2-year Treasury yield eased back toward 4.01% after recently approaching 4.09%, offering some relief to broader financial markets and risk assets.

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