Sensex, Nifty Were Deep In The Red, Then Things Turned Around – Here's What Helped Markets Recover Today

Benchmark equity indices suffered a deep sell-off in early trade on June 3 before recouping most of their losses and trading marginally lower toward the end of the session. IT stocks emerged as the main drag on the benchmark indices, while gains in banking and auto stocks helped the indices to recover a large part of their earlier losses.

At close, the BSE Sensex was down 303.67 points, or 0.41 per cent, at 74,346.17, while the NSE Nifty 50 settled 77.95 points, or 0.33 per cent, lower at 23,405.60.

The broader market also ended under pressure. The Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, declining 0.42 per cent and 0.11 per cent, respectively.

Among sectoral indices, banking stocks provided the strongest support to the market. The Nifty PSU Bank index surged 1.70 per cent, while the Nifty Private Bank index gained 0.70 per cent. The Nifty Bank index, which tracks the performance of the country's largest and most actively traded banking stocks, ended 0.88 per cent higher.

Auto stocks also staged a smart recovery in the second half of the session, after falling nearly 0.75 per cent during the session. The Nifty Auto index reversed losses to close 0.05 per cent higher.

Defensive sectors mirrored the broader market's recovery. Both the Nifty Pharma and Nifty Healthcare indices traded in negative territory during the day before ending with gains of 0.33 per cent and 0.54 per cent, respectively.