Indian benchmark equity indices ended higher on June 2, recovering from early losses as strong buying in information technology (IT) stocks lifted market sentiment. The rally helped the markets snap a four-session losing streak despite persistent geopolitical concerns, elevated crude oil prices, and continued foreign institutional investor (FII) selling.

Key Highlights

• Sensex gained 382 points while Nifty closed above 23,450 amid strong IT buying.
• Infosys, TCS, HCL Tech and Tech Mahindra drove market recovery despite uncertainties.

The BSE Sensex closed 382.50 points, or 0.52%, higher at 74,649.84, while the NSE Nifty 50 gained 100.95 points, or 0.43%, to settle at 23,483.55. Both indices rebounded sharply after trading in negative territory during the early part of the session.

IT Stocks Lead the Recovery

The technology sector emerged as the biggest driver of the market's rebound. Shares of major IT companies, including Infosys, Tata Consultancy Services, HCL Technologies, Tech Mahindra, and Wipro, were among the top gainers on the Nifty 50 index. The Nifty IT index surged more than 4%, supported by optimism surrounding AI-driven technology spending and improving global demand prospects.

Market experts noted that attractive valuations and growing investor confidence in artificial intelligence-led opportunities have renewed interest in IT stocks, helping the sector outperform the broader market.

Global Cues Remain Mixed

The domestic rally came despite weak global sentiment. Asian markets traded lower as investors closely monitored developments surrounding US-Iran negotiations and ongoing geopolitical uncertainties. Markets in Japan, South Korea, and Hong Kong remained under pressure during the session.

Meanwhile, US equities closed at record highs overnight, with technology stocks continuing to drive gains on Wall Street.

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Domestic Investors Cushion Foreign Outflows

FII selling continued to weigh on market sentiment, with foreign investors remaining net sellers. However, strong buying by domestic institutional investors (DIIs) helped offset the pressure and supported the market's recovery.

Broader market participation also remained healthy, with advancing stocks outnumbering decliners across major exchanges, indicating positive investor sentiment beyond frontline indices.