Sensex Surges 500 Points, Nifty Crosses 23,700 Amid Positive Global Cues, India-US Trade Talks

Benchmark indices opened higher on June 1, 2026 tracking positive global cues despite a rebound in crude oil prices. Strength across Asian markets and fresh record highs on the Wall Street helped offset concerns over elevated oil prices and continued foreign institutional investor (FII) selling.

The BSE Sensex opened 427.28 points, or 0.57 per cent, higher at 75,203, while the NSE Nifty 50 started the session with a gap-up of 106.75 points, or 0.45 per cent, at 23,654.50, broadly in line with GIFT Nifty indications.

However, the early momentum proved short-lived, as investors turned cautious after the opening rally. Within the first hour of trade, both benchmark indices gave up most of their gains and slipped into flat territory.

Around 10:15 AM, the Sensex was up just 25 points near the 74,800 mark, while the Nifty 50 was trading flat-to-negative, down about 5 points around 23,540.

Broader Market Bleeds, IT Emerges Outlier

The broader market remained under pressure and underperformed the benchmark indices. The Nifty Midcap 100 slipped nearly 1 per cent, while the Nifty Smallcap 100 declined about 0.25 per cent, indicating weakness beyond the frontline stocks.

Sectorally, the trend was mixed. PSU Bank, FMCG, and Consumer Durables were among the biggest laggards, each falling more than 1 per cent. On the other hand, IT stocks continued to attract buying interest, with the Nifty IT index surging around 3 per cent, led by Infosys and midcap IT stocks, such as Persistent Systems, Coforge, and Mphasis. The Nifty Media index gained about 2.50 per cent, while the Nifty Pharma index rose nearly 0.50 per cent.

Banking stocks also remained under pressure. The Nifty Bank index, which tracks 14 major banking stocks, was down more than 0.60 per cent around the 53,900 level, dragged lower primarily by losses in PSU banks.

Among the Nifty 50 constituents, Infosys emerged as the top gainer, rallying over 4.50 per cent. Tech Mahindra and Coal India followed, advancing between 3 per cent and 4 per cent. Other notable gainers included Tata Consultancy Services, InterGlobe Aviation, Asian Paints, HCL Technologies, HDFC Life Insurance Company, JSW Steel, Bajaj Auto, and Wipro, which rose in the range of 1-2.50 per cent.

India-US Trade Talks Resume

Apart from supportive global cues, investor sentiment was also lifted by the resumption of trade talks between India and the US.

A high-level US delegation led by chief negotiator Brendan Lynch arrived in India on June 1 for a four-day visit to advance negotiations on the proposed India-US Bilateral Trade Agreement (BTA). The talks, scheduled until June 4, will focus on finalising an interim trade agreement and pushing forward discussions under the broader BTA framework.

"It is proposed to finalise the details of the Interim Agreement and take forward the negotiations under the broader BTA on multiple areas such as Market Access, Non-Tariff Measures, Customs and Trade Facilitation, Investment Promotion, Economic Security Alignment," the Ministry of External Affairs said in a statement.

The talks in New Delhi come after an Indian delegation visited Washington in April and follow the joint statement of February 7, under which both countries agreed to work on an interim trade deal and a broader bilateral trade agreement.

Crude Oil Prices Bounce Back

Crude oil prices rose in early trade on June 1 after fresh clashes between Israel and the Iran-backed Hezbollah group in Lebanon reignited concerns over potential supply disruptions in West Asia.

At 10:30 AM, Brent crude futures was up by 2.50 per cent at $93.40 a barrel, while the US West Texas Intermediate (WTI) crude futures rose nearly 3 per cent $90 a barrel.

The rebound comes after both benchmark contracts had fallen nearly 10 per cent last week, their steepest weekly decline in several weeks. The sell-off was driven by reports that the US and Iran were discussing a possible ceasefire framework, raising hopes of easing tensions in the region and reducing risks to oil shipments through the Strait of Hormuz, a key global energy trade route.

Rupee Marginally Stronger

The rupee opened slightly stronger at 94.97 against the dollar on June 1. It extended its gains during the day, with the dollar trading at 94.90, down 0.11 per cent. The rupee moved between 94.76 and 95.23 during the session.

However, gains remained capped as rising crude oil prices and expectations of continued FII outflows weighed on sentiment. FIIs have withdrawn Rs 32,963 crore worth of Indian stocks in May, extending their selling spree for the third consecutive month, according to National Securities Depository (NSDL) data.

The rupee has staged a strong recovery in recent weeks, supported by intervention from the Reserve Bank of India (RBI) and a sharp decline in crude oil prices last week.