Equity markets staged a strong intraday recovery on June 2, with the BSE Sensex ending 382 points higher and the NSE Nifty closing at 23,488. The recovery was driven by buying in IT and banking stocks, which helped indices erase early losses.
Market Performance
The Sensex opened lower but recovered sharply during the day to close at 77,659 points, up 382 points from the previous close. The Nifty, after touching an intraday low of 23,200, rebounded to close at 23,488, gaining 115 points. The recovery was broad-based, with advances outpacing declines on both exchanges.
Sectoral Trends
IT stocks led the rally, with the Nifty IT index gaining over 2%. Banking stocks also contributed significantly, with the Nifty Bank index rising 1.5%. Other sectors such as auto, metal, and real estate also saw gains. On the other hand, pharma and FMCG stocks witnessed some profit booking.
Key Drivers
Analysts attributed the recovery to positive global cues and buying by institutional investors. The US markets ended higher overnight, while Asian markets also traded in the green, boosting sentiment. Additionally, expectations of a normal monsoon and easing inflation concerns supported market optimism.
Expert Views
Market experts said that the intraday recovery indicates strong support at lower levels. They expect the market to continue its upward momentum in the near term, driven by domestic fundamentals and global liquidity. However, they advised caution due to geopolitical risks and volatility in crude oil prices.
In the broader market, the BSE midcap and smallcap indices also ended higher, reflecting positive investor sentiment. The market breadth was strong, with 1,800 stocks advancing against 1,200 declines on the BSE.
Going forward, investors will watch for economic data releases and corporate earnings for further direction. The market is likely to remain volatile in the short term but maintain a positive bias.
