Nifty IT Advances for Second Consecutive Session, Leads Sectoral Gains on AI Demand Optimism - Paper by Pocketful

Jun 02, 2026

NHPC (-6.36%): Stock fell sharply after the government announced an Offer-for-Sale (OFS) of up to 6% stake in the company, including a 3% greenshoe option. The floor price was fixed at ₹71 per share, creating selling pressure on the stock.
PNC Infratech (+1.53%): Stock rose after the company received a ₹194.4 crore Letter of Acceptance from the Lucknow Development Authority for the construction of a four-lane flyover at the Shaheed Path-Gomti River intersection in Lucknow on an EPC basis.
Anant Raj (+2.52%): Stock advanced after the company signed a collaboration framework with various Haryana government departments and agencies. Under the arrangement, the company plans to invest around ₹25,000 crore in developing data centres and cloud services across Haryana.
Rubicon Research (+11.23%): Stock surged to a 52-week high after reporting strong Q4FY26 results. Revenue jumped 43.5% YoY to ₹514 crore, while net profit more than doubled to ₹76.8 crore. Investor sentiment was further boosted by the company’s dividend announcement of ₹1.50 per share for FY26.

IT | Nifty IT (+4.23%): Index emerged as the top sectoral gainer, led by gains in Infosys, TCS & HCL Tech., Sentiment remained strong amid robust global AI demand, optimism over increased technology spending, improved deal-flow expectations, and positive cues from global software companies.
Consumer Durables | Nifty Consumer Durables (+1.30%): Index advanced strongly with 13 gainers and only 2 losers, Sentiment remained positive amid expectations of strong summer demand, improving consumer spending, and optimism around premium appliance sales, driving broad-based buying across the consumer durables space.
Pharma | Nifty Pharma (-0.86%): Index traded in negative territory, led by losses in Wockhardt, Dr. Reddy’s Laboratories & Sun Pharma. Sentiment remained weak as the index declined for the fourth consecutive session amid profit booking, concerns over US pricing pressure, and continued selling across large-cap pharmaceutical stocks.
PSE | Nifty PSE (-0.68%): Index ended lower despite an equal split of 10 gainers and 10 losers. Sentiment remained cautious due to profit booking in select heavyweight PSU stocks, concerns over stretched valuations after the recent rally, and mixed sectoral performance across public sector enterprises.

Technical Level: Nifty opened with a gap-down and found support near 23,230 in early trade. The index gradually moved higher throughout the session, forming a pattern of higher highs and higher lows. It faced resistance around 23,560 and traded near that range until the close, reflecting a recovery in market sentiment and sustained buying interest at lower levels.
Advance-Decline Ratio: Market breadth remained positive with 2,032 advances against 1,285 declines, indicating broader participation in the rally and improved investor sentiment across sectors despite selective profit booking in a few pockets.
The Big Picture: Euro zone inflation rose to 3.2% in May, driven by higher energy prices amid the Iran conflict. The data strengthened expectations of an ECB rate hike later this month, as inflation remains well above the central bank’s 2% target.
FII/DII Activity (June 02, 2026): DII remained net buyers with inflows of ₹9,589 crore, while FII were net sellers with outflows of ₹8,363 crore, indicating strong domestic support despite foreign selling.

Optimism - A positive market outlook where investors expect favorable economic conditions, stronger earnings, or supportive policies, leading to increased buying activity.

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