Market Falls Despite IT Stock Rally

Indian markets ended June 1 on a weak note as banking and heavyweight stocks pulled Sensex and Nifty lower, while IT shares gave investors one bright spot.

Sensex, Nifty End Lower

The Sensex dropped 508.40 points to close at 74,267.34, while the Nifty slipped below the key 23,400 level and ended at 23,382.60. The fall showed clear pressure in the broader market as investors sold financial and heavyweight shares.

Even though the headline numbers looked weak, the trading session had one major contrast. IT stocks gained strongly and helped limit deeper losses, but the rally was not enough to lift the overall market mood.

IT Stocks Defy Market Pressure

The Nifty IT index jumped nearly 4%, led by Infosys, Tech Mahindra, Coforge, Persistent Systems, and LTIMindtree. Infosys gained over 4%, while Tech Mahindra rose nearly 5% as investors looked for opportunities in technology shares.

Market watchers linked the IT buying to hopes of better global tech spending and possible US Federal Reserve rate cuts later this year. However, concerns over crude oil prices, West Asia tensions, and global growth kept investors cautious.

RBI Policy In Focus

All eyes are now on the Reserve Bank of India’s policy decision later this week. Investors will closely track comments on inflation, growth, and interest rates. For now, the message is clear: IT stocks found strong buyers, but the wider market remains nervous