Sensex, Nifty post biggest June fall as weak data hits market sentiment

Sensex and Nifty fall over 1 per cent as weak economic data, selling in IT and metal stocks, and concerns over monsoon conditions weigh on sentiment

Domestic equities declined, and the benchmark Sensex and Nifty posted their biggest declines in June as slowing economic activity and a rout in information technology and metal stocks prompted investors to take money off the table. A weak monsoon also weighed on investor sentiments.

 

The Sensex on Tuesday ended the session at 76,201, a decline of 893 points or 1.2 per cent. Nifty, meanwhile, ended the session at 23,824, a decline of 279 points or 1.2 per cent. Both indices posted their biggest decline since May 29, 2026. The total market capitalisation of BSE-listed firms declined by ₹5.5 trillion to ₹475 trillion.

 

Economic activity  slowed in June as weaker demand was reflected in factory and services activity. HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 57.4 in June  from 59.3 in May. The services PMI fell to a 17-month low of 57.3 from 59.8, while the manufacturing PMI slipped to a low of 54.5 in June from 55 in the previous month.

 

Markets had posted gains in the last two weeks as crude prices fell and foreign portfolio investor (FPI) selling eased amid easing geopolitical tensions in West Asia. In the last nine trading sessions, the Brent crude fell 18 per cent and was trading at $77.12.

 

The US-Iran war led to the closure of the Strait of Hormuz and drove up oil prices. From the peak of $116.83 hit during the war, Brent crude declined 34 per cent.

 

Metal and information technology stocks declined the most, with the Nifty Metal index down 3.2 per cent and the Nifty IT index down 2.2 per cent. IT stocks fell after Jefferies and Morgan Stanley flagged soft demand signals for the sector following Accenture’s weak outlook. A potential US Federal Reserve rate hike, which could affect client spending in the US, is also weighing on IT stocks.

 

“Market sentiment weakened as early gains proved unsustainable amid negative global cues and prevailing caution. Profit booking after the recent rally further intensified downside pressure, resulting in broad-based weakness across key sectors. While stable crude prices and easing geopolitical tensions offered some support, investors maintained a cautious stance, focusing on the progress of the monsoon and ongoing US-India trade discussions,” said Vinod Nair, head of research at Geojit Investments.

 

 Market breadth was weak with 2,878 stocks declining and 1,427 advancing. FPIs were net buyers to the tune of ₹18 crore, while domestic institutions were buyers worth ₹680 crore. Barring four, all Sensex stocks declined. HDFC Bank fell 1.5 per cent, the biggest contributor to the Sensex decline.

 

“Indian equities are expected to trade sideways with a marginal negative bias in the near term amid weak global cues,” said Siddhartha Khemka, head of research-wealth management of Motilal Oswal Financial Services. 

Oil drops 1.2% as investors focus on Hormuz flows 

Oil prices fell more than a $1 on Tuesday as investors monitored crude flows through the Strait of Hormuz amid signs of progress in US-Iran peace talks. Brent crude futures declined $1.18, or around 1.2 per cent, to $76.72 a barrel by 1406 GMT, after earlier dropping to a near four-month low of $72.48

 

 

Gold falls 2% as rate-hike bets boost dollar

 

Gold prices dropped on Tuesday as the US dollar hit a one-year high on increased expectations of a rate hike from the Federal Reserve, outweighing support from softer oil prices amid progress in US-Iran talks. Spot gold dipped 1.7 per cent to $4,118.73 per ounce by 1326 GMT. Domestic gold prices dropped by ₹3,000 to ₹1.49 lakh per 10 grams. Silver tanked by ₹10,500 to a more than two-month low in the New Delhi on Tuesday. Spot silver fell 4.8 per cent to $62.08 per ounce.  Agencies