Indian stock markets opened sharply lower on Wednesday, June 3, with the Sensex plunging over 1000 points and the Nifty slipping below the 23,250 mark as investors reacted to escalating geopolitical tensions in the Middle East and a sharp rise in global crude oil prices.
Market sentiment remained weak after reports of fresh escalation in the conflict involving Iran and the United States. Concerns over possible disruptions to global oil supplies pushed crude prices closer to the $100-per-barrel mark, raising fears of higher inflation and increased import costs for India, a major oil-importing nation.
The sell-off was broad-based, with information technology stocks emerging as the biggest losers in early trade. Shares of major IT companies, including Infosys, TCS, HCLTech, Tech Mahindra and Wipro, came under pressure after recent gains, dragging benchmark indices lower. Banking, financial services, auto and other rate-sensitive sectors also witnessed significant selling as investors reduced exposure to riskier assets.
Among the Nifty stocks, Infosys, TCS, HCLTech, Tech Mahindra and Wipro figured among the top losers, reflecting concerns over global growth and technology spending. Financial and banking counters also traded weak, adding to the market decline.
In contrast, a handful of stocks bucked the broader trend. Vedanta and Alkem Laboratories emerged among the top gainers in early trade, supported by stock-specific developments and buying interest. Other defensive and commodity-linked counters also witnessed selective buying as investors sought shelter from the broader market weakness.
Broader markets mirrored the weakness on Dalal Street, with mid-cap and small-cap indices trading in the red. Analysts said rising oil prices, geopolitical uncertainty and concerns over inflation could continue to keep markets volatile in the near term.
Foreign institutional investors remained cautious and continued their selling activity amid global uncertainty. A weaker rupee and rising bond yields further dampened sentiment, prompting traders to book profits and move to safer investments.
Reliance Industries remained in focus amid ongoing corporate developments, while investors also tracked updates from companies such as Vedanta and Alkem Laboratories. Market participants are closely monitoring corporate announcements and sector-specific developments for fresh trading cues during the session.
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