Stock Market: Sensex Crashes 700 Points, Nifty Slips Below 24,600 As Global Headwinds Rattle Markets

The Indian stock market witnessed another sharp correction on Tuesday, June 3, as benchmark indices failed to sustain early gains amid profit booking, geopolitical tensions, and persistent foreign investor selling.

The Sensex dropped over 700 points, while the Nifty breached the 24,600 mark, reflecting the intense pressure in the system.

Markets Open Strong But Reverse Quickly
The day began on a hopeful note with the Sensex opening 307.38 points higher at 81,681.13, and Nifty climbing 107.30 points to 24,823.90 on the back of positive global cues.

However, the optimism quickly faded. By 1:37 PM, the Sensex had slumped 573.11 points to 80,800.64, while the Nifty dropped 151.80 points to 24,564.80.

Only M&M remained in the green on the 30-share Sensex, while Adani Ports, Bajaj Finserv, L&T, and PowerGrid were among the top losers.

Nifty Bank Makes New High But Fails to Hold Gains
On the sectoral front, the Nifty Bank index climbed to a new 52-week high of 56,161.40 in early trade but quickly gave up gains, falling below the 56,000 mark and trading at 55,800 by 9:35 AM.

As of 11:00 AM, the Sensex was down 316.55 points at 81,057.20, and Nifty was trading at 24,630.55, down 86.05 points. The broader market saw 1,956 stocks advancing, 1,341 declining, and 140 remaining unchanged on the BSE.

Profit Booking, Valuation Fears and Technical Resistance: Expert View
Sugandha Sachdeva, Founder of SS WealthStreet, explained that the sharp fall is largely due to profit booking at higher levels, especially after the robust rally over the last three months.
“We are witnessing a period of consolidation and profit booking. After the sharp upmove from February lows, the markets are at elevated valuations. This is prompting institutional and retail investors alike to book profits,” she said.

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Sachdeva pointed out that Nifty is struggling to sustain above the 24,880–25,000 zone, which is acting as a strong technical resistance.
“From a technical standpoint, the 25,000 level is a psychological resistance. We breached it briefly, but there was no follow-through buying. Unless we see a decisive close above that mark, the upside remains capped,” she said.

“In fact, on a monthly closing basis, 24,880 is a critical level. The index needs to close above that for bulls to regain strength. Right now, every attempt to move higher is being met with supply pressure,” she added.

She also highlighted a key support level to watch.
“On the downside, 24,400 is acting as a near-term support. If that breaks, we could be headed towards 24,000. That zone will be crucial for market stability,” Sachdeva said.

Global Worries Weigh Heavily on Sentiment
Sugandha emphasised that external macroeconomic developments are significantly influencing the market’s behavior.
“There are multiple global headwinds—US-China trade tensions, a stalled peace process between Russia and Ukraine, and expectations of tariff hikes by the US. These factors are creating risk aversion among investors,” she said.

She further pointed to the uncertainty around central bank policies and economic data releases.

"Given the upcoming ECB rate decision followed by the US jobs report, investors are on edge this week. Add to that our own RBI MPC meeting, and until there’s clarity, markets are likely to stay volatile," she elaborated.

“Markets are also digesting concerns that if trade tensions escalate or macro data disappoints, global growth could take a hit. And that’s not good for risk assets like equities,” she warned.
 

Outlook: Volatility to Persist
Sachdeva concluded that the market is likely to only volatile in the short term unless key resistance levels are broken decisively.
“Volatility is here to stay. Markets are reacting to both global and domestic triggers. We’ll need a strong positive catalyst—be it global cues, policy commentary, or macro data—to break out of this phase,” she said.

As the Sensex and Nifty continue to wobble, market participants are advised to stay cautious, track key levels closely, and avoid aggressive positions until more clarity emerges from global and domestic developments.