Sensex, Nifty Extend Losses Amid Weak IT and Global Cues

Indian equity benchmarks, Sensex and Nifty, continued their downward trend for the second consecutive day on June 30, 2026. The 30-share BSE Sensex retreated 249.70 points, or 0.33%, to finish at 76,478.67, while the 50-share NSE Nifty shed 80.50 points, or 0.34%, to settle at 23,865.75. Investors remain cautious as selling pressure intensified in IT, banking, and oil & gas stocks. Market sentiment is further dampened by concerns over the southwest monsoon's deficit, which is reported to be the worst in a decade, potentially impacting agricultural yields and upcoming corporate earnings.

The Nifty IT index led the decline, falling over 2% during the session, and has recorded a severe 30.6% drop in the first half of calendar year 2026, marking its weakest half-year performance since 2003. This slump was primarily triggered by a negative revenue growth forecast from Accenture earlier in June, which caused widespread selling in major Indian IT firms like Infosys and TCS. Global uncertainty regarding U.S.-Iran negotiations in Doha, coupled with sustained outflows from Foreign Institutional Investors (FIIs), has compounded the market's vulnerability. Meanwhile, Brent crude rose to $73.32 per barrel, further pressuring inflation-sensitive sectors.

Despite the broader weakness, small and mid-cap stocks showed signs of resilience, with the BSE SmallCap and MidCap indices posting modest gains on June 30. Recent volatility in the global chip sector, prompted by strong quarterly results from Micron Technology on June 25, has provided some intermittent relief, as investors assess the valuations of AI-driven semiconductor stocks. However, with Nifty50 down 8.6% and Sensex down 10.2% for the first half of 2026, market participants are bracing for potential Q1FY27 margin pressure. Investors are closely watching for signs of stability and monsoon-related updates to navigate the uncertain short-term trajectory.