As per provisional closing data, the barometer index, the S&P BSE Sensex declined 303.67 points or 0.41% to 74,346.17. The Nifty 50 index slipped 77.95 points or 0.33% to 23,405.60.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index fell 0.50% and the BSE 250 SmallCap Index shed 0.01%.

The market breadth was negative. On the BSE, 1,814 shares rose and 2,398 shares fell. A total of 183 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 6% to 16.28.

In the commodities market, Brent crude for Aug 2026 settlement jumped $2.81 or 2.93% to $98.81 a barrel.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 95.6400 compared with its close of 95.3650 during the previous trading session.

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.

Buzzing Index:

The Nifty IT index slumped 5.57% to 29,384.45. The index climbed 7.64% in the past three consecutive trading sessions.

Tata Consultancy Services (down 8.37%), Persistent Systems (down 7.09%), LTM (down 6.72%), Coforge (down 6.61%), Tech Mahindra (down 6.32%), HCL Technologies (down 5.24%), Mphasis (down 4.23%), Infosys (down 3.79%), Oracle Financial Services Software (down 3.38%) and Wipro (down 2.78%) declined.

Stocks in Spotlight:

Tata Consultancy Services (TCS) tumbled 8.37%. The company has announced the expansion of its long-standing partnership with Euroclear Group to support the next phase of transformation for Sweden's Central Securities Depository (CSD).

Varroc Engineering rallied 3.55% after the company said that it has entered into a strategic cooperation agreement with China-based TOLYY OPTRONICS to localise and supply next-generation digital cockpit display solutions for global passenger and commercial vehicle platforms.

NMDC rose 0.72%. The company announced that it increased the prices of its key iron ore products, Baila lump iron ore and Baila fines with effect from June 3, 2026. The company has revised the price of Baila Lump ore (65.5%, 10-40 mm) to Rs 5,700 per ton, up Rs 200 per tonne from Rs 5,500 per ton fixed on May 6, 2026. Similarly, the price of Baila Fines (64%, -10 mm) has been increased to Rs 4,850 per ton from Rs 4,700 per ton, reflecting a hike of Rs 150 per ton.

IndusInd Bank declined 1.33% after the following a media report about a fresh whistleblower complaint against the private lender. According to the media report, the complaint was sent to the Prime Minister's Office, the Reserve Bank of India (RBI), the Serious Fraud Investigation Office (SFIO), the National Financial Reporting Authority (NFRA) and other agencies.

The complaint reportedly seeks an investigation into alleged insider trading, governance failures and shortcomings in forensic and audit reviews. The allegations are linked to the discovery of a Rs 2,000-crore discrepancy at the bank. The report said the complaint names Samir Agarwal, former zonal head of eastern India at IndusInd Bank.

According to the report, Agarwal allegedly made gains of around Rs 46 crore through share transactions worth nearly Rs 815 crore.

Meanwhile, the stock exchanges have sought clarification from IndusInd Bank regarding the news report. The bank's response is awaited.

Zydus Lifesciences shed 0.13%. 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. The warning letter was issued in response to a request for records pursuant to a section of the Federal Food, Drug, and Cosmetic Act, and does not pertain to any on-site inspection of the facility by the US FDA.

Concord Biotech advanced 2.50% 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.

Mycophenolate mofetil is an antimetabolite immunosuppressant used to prevent organ rejection in adult and pediatric patients aged three months and older who have undergone kidney, heart, or liver transplants, in combination with other immunosuppressants. According to market estimates, the U.S. market for Mycophenolate Mofetil is approximately $30 million.

Diamond Power Infrastructure (DPIL) slipped 3.26%. The company said that it has announced the successful commissioning of its eighth Medium Voltage (MV) / Extra High Voltage (EHV) power cable production line at its manufacturing facility in Vadodara, Gujarat.

RIR Power Electronics shed 0.46%. The company announced that Ramesh Gopal Trasi has resigned from the position of Chief Financial Officer (CFO) with effect from 2 June 2026.

Marsons fell 7.42%. The company announced that it has received a letter of intent (LoI) worth Rs 31.27 crore from Assam Electricity Grid Corporation.

Capacite Infraprojects rose 0.81%. The company said that it has received letter of intent (LOI) from Ten X Realty East, a subsidiary of Raymond Realty, for a total contract value of Rs 589 crore.

Global Markets:

European market declined as investors weighed U.S. proposals for sweeping new tariffs on 60 countries.

Asian markets ended higher on Wednesday as investors appeared to look past uncertainty over U.S.-Iran negotiations aimed at ending the Middle East conflict.

Tensions have escalated between Washington and Tehran, with Secretary of State Marco Rubio saying on Tuesday that Iran has mined large segments' of the Strait of Hormuz.

A White House official was quoted by the media saying that the Pentagon has destroyed numerous mines and over 40 minelaying vessels.

The Strait of Hormuz is a critical waterway, particularly for the energy market globally ' around 20% of the world's oil supplies passed through the strait before the war.

Overnight on Wall Street, the S&P 500 ticked up to a record close after reaching a new all-time high on Tuesday as traders monitored the latest U.S.-Iran developments as well as moves in major tech names.

The broad-based index advanced 0.13% to end at 7,609.78 for its first close above the 7,600 threshold, while the Dow Jones Industrial Average gained 228.91 points, or 0.45%, to 51,307.79. The latter also rose to a new all-time intraday high earlier in the session. The Nasdaq Composite eked out a gain of 0.03% to end at 27,093.90.

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