At 11:30 IST, the barometer index, the S&P BSE Sensex, slipped 737.88 points or 0.99% to 73,846.14. The Nifty 50 index lost 198.70 points or 0.85% to 23,286.

In the broader market, the BSE 150 MidCap Index fell 1.25% and the BSE 250 SmallCap Index shed 0.97%.

The market breadth was weak. On the BSE, 1,217 shares rose and 2,765 shares fell. A total of 193 shares were unchanged.

Economy:

The HSBC India Services PMI was revised higher to 59.8 in May 2026 from the preliminary estimate of 58.9 and a final reading of 58.8 in April. Still, the latest reading marked the strongest growth since last November, as output continued to expand while new orders rose at the fastest pace in three months. Output growth was supported by healthy demand conditions, new client wins, and ongoing improvements in new business intakes. New export business also rose, albeit at a slower pace than total sales and the average recorded during the 2025 calendar year.

Meanwhile, employment increased, with job creation remaining solid and the second-fastest in just under a year. On prices, both input and output inflation recorded their strongest increases in four months, driven by higher food, fuel, gas, labor, and material costs. Lastly, sentiment weakened to a three-month low and remained below the historical trend, though firms stayed optimistic due to expectations of favorable demand conditions.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 8.22% to 16.62. The Nifty 30 June 2026 futures were trading at 23,276.70, at a discount of 9.3 points as compared with the spot at 23,286.

The Nifty option chain for the 30 June 2026 expiry showed a maximum call OI of 84 lakh contracts at the 24,000 strike price. A maximum put OI of 56.6 lakh contracts was seen at the 24,000 strike price.

Buzzing Index:

The Nifty FMCG index fell 1.09% to 48,083.05. The index jumped 0.76% in the past trading session.

Patanjali Foods (down 4.37%), ITC (down 2.72%), Emami (down 2.09%), Dabur India (down 2.08%) and Godrej Consumer Products (down 2%), United Spirits (down 1.57%), Britannia Industries (down 1.1%), Tata Consumer Products (down 0.58%), Nestle India (down 0.51%) and Hindustan Unilever (down 0.51%) fell.

Stocks in Spotlight:

Zydus Lifesciences fell 0.52%. The company said that it has received a warning letter from the United States Food and Drug Administration (USFDA) relating to its formulation manufacturing facility located at Baddi, Himachal Pradesh

Bajel Projects rose 0.10%. The company said that it has bagged an order from a Datacenter Client (Mumbai) for design, engineering, procurement, supply, erection, commissioning & performance testing of a 400/220/33 KV GIS Substation for a Data Center project.

Concord Biotech jumped 6.58% after the company received an approval from the U.S. Food and Drug Administration (USFDA) for its ANDA, Mycophenolate Mofetil for oral suspension USP, 200 mg/mL.

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