Last Updated on June 1, 2026 5:07 pm by BIZNAMA NEWS
AMN / BIZ DESK
Indian equity markets closed sharply lower on Monday, extending losses for a fourth straight session as investors turned cautious amid escalating geopolitical tensions in the Middle East. Rising crude oil prices and a weakening rupee added to concerns over inflationary pressures, prompting broad-based selling across sectors.
The S&P BSE Sensex declined 508.40 points, or 0.68%, to close at 74,267.34, while the NSE Nifty 50 fell 165.15 points, or 0.70%, to settle at 23,382.60, slipping below the key 23,400 level. Over the last four trading sessions, the Sensex has lost 2.9%, while the Nifty has fallen 2.7%.
The S&P BSE Sensex declined 508.40 points, or 0.68%, to close at 74,267.34, while the NSE Nifty 50 fell 165.15 points, or 0.70%, to settle at 23,382.60, slipping below the crucial 23,400 mark. Over the past four trading sessions, the Sensex has shed 2.9%, while the Nifty has lost 2.7%.
Broader markets underperformed the benchmark indices, reflecting heightened risk aversion among investors. The BSE MidCap Index dropped 1.43%, while the SmallCap Index declined 0.87%. Market breadth remained weak, indicating widespread selling pressure across sectors.
Volatility also increased, with the India VIX rising 2.20% to 16.54, signaling growing uncertainty in the near-term market outlook.
Among sectoral performers, information technology stocks stood out, with the Nifty IT Index advancing 2.66%. Media and metal shares also posted gains, rising 1.37% and 0.49%, respectively. In contrast, defensive and domestic-focused sectors came under pressure, with the Nifty FMCG Index falling 2.30%, followed by PSU Banks and Realty, which declined 1.85% and 1.83%, respectively.
Despite market weakness, macroeconomic indicators offered some encouragement. India’s manufacturing sector expanded at a faster pace in May, with the HSBC India Manufacturing PMI rising to 55.0 from 54.7 in April, surpassing preliminary estimates and marking the strongest improvement in three months.
Meanwhile, Goods and Services Tax (GST) collections rose 3.2% year-on-year to ₹1.94 lakh crore in May 2026, reflecting steady economic activity and robust tax compliance.
On the global front, investors closely monitored developments in the Middle East as tensions involving Israel, Lebanon, Iran, and the United States intensified. Brent crude oil surged more than 3% to trade above $94 per barrel, while the rupee weakened against the US dollar. Rising energy costs and geopolitical uncertainty continue to pose risks to inflation and economic growth.
Global markets, however, remained relatively resilient. Most Asian and European markets closed higher, while US stock futures pointed to a positive opening on Wall Street following record highs achieved by major US indices last week.