Indian stock markets opened lower on June 3, continuing their downward streak for the third straight session. The Sensex fell by over 380 points, while the Nifty slipped below the 24,650 mark, mainly due to pressure from banking, FMCG, and IT stocks.

Markets Struggle But Broader Indices Stay Strong

At around 9:30 AM, the Sensex was down 386 points at 80,987, and the Nifty dropped by 99 points to 24,617. Despite this dip in headline indices, the broader market showed strength, with more stocks gaining than losing. About 1,906 stocks were advancing, compared to 900 declining, while 132 remained unchanged.

This clearly shows that midcap and smallcap stocks are holding strong, even as frontline indices take a hit.

India VIX Rises – Market Volatility Picks Up

The India VIX, which indicates market volatility and investor fear, climbed 1.5% to 17.42, signaling increased uncertainty in the market. This rise reflects growing nervousness among traders and investors.

Sector-Wise Performance: Mixed Sentiment Across the Board

Nifty Smallcap 100 and Nifty Metal were the best performers, gaining 0.55% and 0.42%, respectively.
Nifty Midcap 100 and Nifty Oil & Gas also posted healthy gains.
Realty and PSU Banks showed modest gains of 0.22% and 0.17%, respectively.

On the downside:

Nifty Private Bank slipped 0.7%, pulling Nifty Bank down by 0.29%.
Other key sectors like FMCG, IT, infrastructure, and pharma also saw slight losses, showing that investors are still cautious in their approach.

Adani Group Under Pressure After US Report

Adani Ports and Adani Enterprises were among the top losers after a report from the Wall Street Journal stated that US prosecutors have launched a probe into possible imports of Iranian petrochemical products by Adani companies.

The investigation is reportedly focused on whether Iranian LPG was brought into India via Mundra Port, which is operated by the Adani Group. According to the report, certain tankers used by the companies followed routes suggesting attempts to bypass sanctions, which has raised concerns among investors.

Expert View: Domestic Factors Still Positive

Despite the cautious mood, some experts remain optimistic about the Indian market in the medium term. Vinod Nair of Geojit Investments pointed out that factors like a possible RBI rate cut, better monsoon forecast, strong Q4 GDP data, and healthy GST collections are supportive for domestic markets.

However, in the short term, he noted that investors are being selective and focusing more on domestic and interest-sensitive sectors.

Conclusion

In summary, while the Sensex and Nifty continue to face pressure, especially from banking and IT stocks, the resilience of mid and smallcap stocks is a silver lining. With rising volatility and ongoing global uncertainties like the Adani probe, the market mood remains mixed.

Investors may need to stay cautious in the near term, focusing on stable domestic sectors until clearer signals emer