The Indian stock market closed Tuesday’s session on June 2 with healthy gains, as the benchmark indices ended over 0.5% higher, snapping their four-day losing streak. A sharp rally in technology stocks supported the market rebound, although weakness in financial shares capped further upside.
The Nifty 50 closed 0.53% higher at 23,506, while the Sensex ended the session at 74,692, up 0.57% from the previous close.
Meanwhile, weakness in the domestic market, led by sustained selling by overseas investors, saw India slip to the seventh position globally in terms of equity market capitalisation, as weaker earnings growth and limited exposure to artificial intelligence-linked stocks helped South Korea move ahead.
Data from stock exchanges showed that the combined market capitalisation of companies listed on South Korea’s KOSPI, KOSDAQ, and KONEX exchanges rose to $5.01 trillion, surpassing the $4.85 trillion market capitalisation of companies listed on India’s National Stock Exchange.
In the Middle East, tensions remained elevated after Iran reportedly said it would suspend the exchange of messages with the US in response to Israel’s intensifying military operations in Lebanon before sentiment improved after US President Donald Trump said negotiations were still ongoing.
Following the recent escalation, crude oil prices surged 4% overnight before retreating nearly 2% in Tuesday’s trade.
In the currency market, the Indian rupee slipped below the 95-per-dollar mark on Tuesday. The currency has declined more than 4% since the Iran conflict began in late February and had touched a record low of nearly 97 per dollar in mid-May before rebounding following RBI interventions.
