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* Equity benchmark indices ended lower, with the Nifty slipping over 0.5% to close below the 23,400 mark, extending its decline to more than 2% over the last two trading sessions. The weakness was largely driven by persistent FII selling pressure, a nearly 3% rise in crude oil prices, and uncertainty around the US–Iran peace deal, which weighed on market sentiment. Investors also remained cautious after the IMD forecasted a below-normal monsoon, while focus now shifts to the RBI policy outcome scheduled for June 5.

* The Nifty declined 168 points or 0.7% to close at 23,379, while the Sensex fell 508 points or 0.7% to close at 74267, extending its two-session decline to nearly 2%. Selling was broad-based, with mid-cap, small-cap, auto, and FMCG stocks among the major losers, while IT and metal stocks managed to outperform. The Nifty 500 advance-decline ratio stood at 1:3, reflecting widespread profit booking across the broader market.

* Sectorally, Nifty IT emerged as the top gainer, rising over 2%, after NVIDIA CEO Jensen Huang said Indian IT companies are well-positioned for AI implementation during NVIDIA’s GTC Taipei keynote at Computex 2026. IT names such as Persistent Systems, Tech Mahindra, Infosys, LTIMindtree, OFSS, and Coforge gained between 2–4%. On the downside, Nifty FMCG dropped over 2%, pressured by inflation concerns linked to higher fuel prices, rupee weakness, and the risk of a below-normal monsoon.

* Globally, US markets closed at record highs overnight, while Asian and European markets traded mixed as investors remained cautious amid uncertain signals around the US– Iran peace deal.

TechnicalOutlook:

*Nifty index opened positive but selling pressure took over right from the start of the session and it failed to hold above 23750 zones. Any minor attempts of recovery were negated and the index further fell to 23350 zones to finally close with losses of around 170 points. It formed a big bearish candle on the daily frame and has been making lower lows from the last four sessions. Now till it holds below 23500 zones, weakness could be seen towards 23200 then 23000 zones while on the upside hurdles have shifted lower to 23650 then 23750 zones.

* S&P BSE Sensex index opened on a positive note and bears took charge from the very first tick. Selling pressure persisted throughout the session as the index drifted lower in a slow and steady manner towards 73200 zones. It formed a bearish candle on the daily chart and continues to make lower lows from the last five sessions indicating that bears are having the upper hand in the near term. Now till it holds below 74500 zones weakness could be seen towards 74000 then 73700 levels while on the upside hurdle is seen at 74500 then 74800 zones.

DerivativeOutlook:

* Nifty future closed negative with losses of 1.22% at 23459 levels. Positive setup seen in Persistent, NBCC, HCL Tech, Coforge, Laurus Labs, OFSS, Zydus Life, Exide Industries, Angel One and National Aluminium while weakness seen in Inox Wind, IREDA, LTF, Dabur, Glenmark, Union Bank, Ashok Leyland, ICICI Prudential, Delhivery and Hindustan Unilever.

* On option front, Maximum Call OI is at 24000 then 23600 strike while Maximum Put OI is at 23400 then 23000 strike. Call writing is seen at 23600 then 23500 strike while Put writing is seen at 23400 then 23300 strike. Option data suggests a broader trading range in between 22800 to 23800 zones while an immediate range between 23000 to 23600 levels.

• Manufacturing sector growth hits 3-month high in May as domestic market fuels activity - Manufacturing sector activity growth accelerated to a three-month high in May at 55 vs 54.7 in April, driven by demand strength, infrastructure projects and new business gains, even amid inflationary pressures.

• Zee Entertainment – Company has partnered with FIFA to broadcast 39 global football events in India until 2034, including the men’s world cup championships in 2026 and 2030, and women’s world cup in 2027 May GST Collection surge by 3% Goods and Services Tax collections rose 3.2% year-on-year to Rs 1,94 lakh crore in May 2026, driven by a strong uptick in import revenues even as domestic collections posted a modest decline, government data showed on Monday.

* Puravankara – Company has entered into an agreement with landowner to develop a 11-acre housing project in Bengaluru with a revenue potential of Rs 1,100 crore.

• Tata Technologies - Company secures SAP PartnerEdge sell authorisation,helps strengthen enterprise and AI-led transformation capabilities.

• Mini Diamond – Company rceipt of significant doemstic order for Cut and Polished Lab Grown Diamonds from Aura Diamond amounting to Rs14 cr.

• Balu Forge – Company secures major order for Rs15.2cr for 30000 Artillery Shells.

• May Auto sales – Hyundai Motor at 61137 unit (up 4.1% YoY), TVS Motor at 5.7 lakh (up 31% YoY), Maruti 2.42 lakh (up 35% YoY), M&M Tractor sales at 49695 unit (up 20% YoY), Escorts at 12310 unit (up 19% YoY), Bakak Auto at 4.61 lakh (up 20% YoY).

Global Market Update

* European Market - European shares fluctuated at the start of the week as gains in energy stocks were offset by losses in Wise Group Plc and drugmakers.

* Asian Market – Asian stocks climbed, extending a record-beating rally for a second session, as enthusiasm for the artificial intelligence trade outweighed caution over mixed signals surrounding the US-Iran peace deal.

* US Data - Manufacturing PMI.

* Commodity - Crude oil prices rose 3% to $93/bbl after military exchanges between the United States and Iran, alongside escalating tensions in Lebanon, heightened concerns over potential supply disruptions through key shipping routes.

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