The Indian stock market closed Tuesday’s session on June 2 with healthy gains, as the benchmark indices ended over 0.5% higher, snapping their four-day losing streak. A sharp rally in technology stocks supported the market rebound, although weakness in financial shares capped further upside.
The Nifty 50 closed 0.53% higher at 23,506, while the Sensex ended the session at 74,692, up 0.57% from the previous close.
Meanwhile, weakness in the domestic market, led by sustained selling by overseas investors, saw India slip to the seventh position globally in terms of equity market capitalisation, as weaker earnings growth and limited exposure to artificial intelligence-linked stocks helped South Korea move ahead.
Data from stock exchanges showed that the combined market capitalisation of companies listed on South Korea’s KOSPI, KOSDAQ, and KONEX exchanges rose to $5.01 trillion, surpassing the $4.85 trillion market capitalisation of companies listed on India’s National Stock Exchange.
In the Middle East, tensions remained elevated after Iran reportedly said it would suspend the exchange of messages with the US in response to Israel’s intensifying military operations in Lebanon before sentiment improved after US President Donald Trump said negotiations were still ongoing.
Following the recent escalation, crude oil prices surged 4% overnight before retreating nearly 2% in Tuesday’s trade.
In the currency market, the Indian rupee slipped below the 95-per-dollar mark on Tuesday. The currency has declined more than 4% since the Iran conflict began in late February and had touched a record low of nearly 97 per dollar in mid-May before rebounding following RBI interventions.
IT stocks lead rally; HFCL, NMDC Steel extend gains
Technology stocks continued to dominate the market on Tuesday, supported by better-than-expected quarterly performance from major US software companies, which reassured investors that the impact of AI-driven coding tools on the software industry could remain limited.
Newgen Software Technologies Limited topped the gainers’ chart, surging 17.4% to ₹518 apiece. It was followed by Hexaware Technologies, Tata Consultancy Services Limited, and Infosys Limited, which rallied 6.9%, 6.5%, and 5.7%, respectively.
Other technology stocks also joined the rally, with Tata Elxsi Limited, Birlasoft Limited, Zensar Technologies Limited, Sonata Software Limited, Affle (India) Limited, 3i Infotech Limited, HCL Technologies Limited, Coforge Limited, L&T Technology Services Limited, and Netweb Technologies India Limited gaining more than 3% each.
Extending its winning streak to a fourth straight session, shares of HFCL Limited gained 4.5% to ₹190.40 apiece. Meanwhile, Titagarh Rail Systems Limited rebounded 4% to ₹834 after witnessing a two-day sell-off.
NMDC Steel Limited extended its earnings-led rally into a second straight session, with the stock surging another 4.1% to ₹52.6 apiece, while parent company NMDC Limited also ended over 3% higher.
Among newly listed companies, Groww and Go Digit General Insurance Limited also witnessed strong buying interest, with both stocks gaining more than 2.5%.
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