IT stocks are the biggest losers, dragging the market lower.
US-Iran tensions heighten fears in global financial markets.
Investors now await RBI policy updates to gauge market direction.
The Indian stock market stays weak on June 3, 2026. Both the Sensex and the Nifty50 trade in red during the morning session. Selling in IT shares pulls the market down. Global tension between the United States and Iran also affects investor confidence.
Investors stay cautious amid fears of greater uncertainty in global markets. Many traders avoid buying on fresh news and prefer to wait for clear signals before investing again.
At the time of writing, the Nifty50 falls 261.55 points or 1.11 percent and trades at 23,218.85. The Sensex also drops by 931.48 points, or 1.25 percent, to 73,712.74.
The market starts the day on a weak note and remains under pressure through the morning trade.
The IT sector sees the biggest decline today. Heavy selling in technology shares hurts the market badly. The Nifty IT index falls more than 5 percent and becomes the worst-performing sector of the day.
Top IT companies face strong losses. Tata Consultancy Services, HCL Technologies, and Tech Mahindra become the top losers in the Nifty50 index.
Investors worry that global uncertainty may affect business demand for IT companies. Most Indian IT firms depend on clients from foreign countries, especially the United States and Europe. When global tension rises, investors fear that companies may reduce spending on technology services.
This fear leads to strong selling in IT shares. Since IT companies carry significant weight in the market, a decline in these stocks pulls both the Sensex and the Nifty lower.
The weakness spreads across the broader market as well. Mid-cap and small-cap shares also trade lower during the session.
The Nifty MidCap index trades 0.67 percent down. The Nifty SmallCap index also falls 0.48 percent.
Even though these losses remain smaller than the declines in large IT stocks, the overall market mood remains negative. Investors remain nervous amid global events and uncertainty about the market's future direction.
Many traders prefer to book profits and reduce risk instead of making fresh purchases.
Apart from IT shares, other sectors are also weak. The Nifty Realty index trades lower as property-related shares see selling pressure.
The Nifty PSU Bank index also underperforms during the session. Public sector bank shares remain weak as investors stay cautious in the current market environment.
Experts say investors usually avoid risky sectors when uncertainty rises in global markets. This trend becomes visible in today’s trade as several sectors remain under pressure.
However, not all sectors see heavy losses.
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The metal sector performs better compared to other sectors. The Nifty Metal index records the least loss among all sectoral indices.
Metal shares show some strength and help reduce the overall market decline. Even though the sector trades in red, the losses remain limited compared to IT and realty shares.
This gives some support to the broader market during a weak trading session.
On the domestic front, investors closely watch the Reserve Bank of India’s Monetary Policy Committee meeting. The three-day meeting starts on Wednesday and becomes one of the biggest events for the market this week.
Investors wait for updates on interest rates, inflation, economic growth, and liquidity conditions.
The RBI plays an important role in the financial system. Any major decision or statement from the central bank may affect the stock market, banking sector, and overall investor sentiment.
Many market participants hope the RBI may take steps that support economic growth and improve confidence in the market.
Until the policy outcome becomes clear, cautious trade may continue.
Global tension between the United States and Iran remains the main reason behind today’s market weakness.
US Secretary of State Marco Rubio makes a strong statement before the Senate Foreign Relations Committee. He says Iran has mined a large section of the Strait of Hormuz and fired at commercial ships.
His statement heightens fears that peace talks between the US and Iran remain far from successful.
Investors worry that the conflict in West Asia may continue for a long time. This fear affects markets across the world.
The Strait of Hormuz remains one of the most important oil routes in the world. A large amount of global oil supply passes through this route. Any disruption in this area may increase oil prices and create problems for global trade.
Given this situation, investors become nervous and reduce investment in stock markets.
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Overall, the Indian stock market remains under pressure amid weak global signals and heavy selling in IT shares.
The sharp fall in technology stocks, weakness in broader markets, and rising geopolitical tension keep investors worried during the trading session.
At the same time, traders also focus on the RBI policy meeting for fresh direction.
Experts believe market volatility may continue in the coming days if global tension remains high. Investors may stay cautious until there is more clarity on the US-Iran situation and the RBI’s policy decision.
For now, the market mood remains weak, and selling pressure continues across several sectors.
The Sensex and Nifty are falling given intensive selling across the IT sector coupled with anxious global sentiment. Geopolitical friction between the United States and Iran has heavily dampened investor confidence.
The technology sector is the worst performer of the day. Driven down by massive software stock offloading, the Nifty IT index collapsed by more than 5 percent.
The primary drag on the Nifty50 index comes from major Indian technology firms. Tata Consultancy Services (TCS), HCL Technologies, and Tech Mahindra have emerged as today's top losers.
On the domestic front, market participants are heavily focused on the Reserve Bank of India’s three-day Monetary Policy Committee meeting, which kicks off this Wednesday.
The metal sector is showing relative strength amidst the broader market sell-off. The Nifty Metal index has recorded the smallest decline among all sectoral indices.