JKB Financial Services Ltd.

As on : 01-Jun-2026

Market Commentary - Mid-Session
01-Jun-2026 14:33

Indices trade with significant cuts; FMCG shares decline

The domestic equity benchmarks traded with substantial losses in mid-afternoon trade as investors remained cautious amid escalating geopolitical tensions in the Middle East. Sentiment was further weighed down by a sharp rise in Brent crude oil prices and the depreciation of the rupee, raising concerns about inflationary pressures on the domestic economy. The Nifty slipped below the 23,500 level. FMCG shares extended losses for the third consecutive trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex declined 458.03 points or 0.61% to 74,317.71. The Nifty 50 index fell 143.10 points or 0.61% to 23,403.35.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index fell 1.23% and the BSE 250 SmallCap Index declined 0.77%.

The market breadth was weak. On the BSE, 1,596 shares rose and 2,682 shares fell. A total of 216 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 3.86% to 16.81.

Economy:

India's manufacturing sector recorded stronger growth in May, with final figures surpassing earlier flash estimates. The HSBC India Manufacturing PMI rose to 55.0, up from 54.7 in April and the flash reading of 54.3, marking the best improvement in three months.

GST Collections rose 3.2% YoY to Rs 1.94 lakh crore in May 2026 compared with Rs 1.88 lakh crore in May 2025. Gross Central GST (CGST) collection from domestic transactions during the reported month stood at Rs 37,397 crore, State GST (SGST) at Rs 45,143 crore and Integrated GST (IGST) at Rs 51,990 crore.

Buzzing Index:

The Nifty FMCG index fell 1.81% to 48,487.50. The index dropped 3.46% in three consecutive trading session.

Dabur India (down 4.01%), Colgate-Palmolive (India) (down 2.91%), Tata Consumer Products (down 2.83%), United Breweries (down 2.47%), Hindustan Unilever (down 2.43%), ITC (down 2.04%), Godrej Consumer Products (down 1.96%), Marico (down 1.69%), Nestle India (down 1.27%) and United Spirits (down 1.23%) declined.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.36% to 7.028 compared with previous session close of 7.003.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 94.9125 compared with its close of 94.8500 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement fell 0.82% to Rs 154,302.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.08% to 98.93.

The United States 10-year bond yield rose 0.34% to 4.467.

In the commodities market, Brent crude for July 2026 settlement surged $3.27 or 3.59% to $94.39 a barrel.

Stocks in Spotlight:

VST Tillers Tractors slipped 1.09%. The company reported a 28.28% year-on-year increase in total sales for May 2026, with overall volumes rising to 4,472 units from 3,486 units in May 2025.

NMDC Steel surged 12.11% after the company reported a sharp turnaround in its March quarter earnings, aided by higher sales. On a standalone basis, the company posted a net profit of Rs 391.91 crore in Q4 FY26 compared with a net loss of Rs 473.39 crore in Q4 FY25. It also returned to profitability on a sequential basis from a net loss of Rs 243.97 crore in Q3 FY26.

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