Sensex, Nifty end June lower; Nifty IT slides 2.7%

Market ends lower on monthly expiry

Indian equity benchmarks extended their decline on Tuesday, ending lower on the monthly derivatives expiry day as information technology stocks led the selloff. The 30-share BSE Sensex fell 249.70 points, or 0.33%, to close at 76,478.67. The NSE Nifty50 declined 80.50 points, or 0.34%, to settle at 23,865.75. Market participants described the session as volatile but range-bound, with the indices unable to hold on to early strength. The day’s move also marked the third straight session of losses, keeping the broader market in a consolidation phase.

How the session unfolded

Ajit Mishra, SVP (Research) at Religare Broking, said markets traded in a “volatile yet narrow range” and ended marginally lower, extending the ongoing consolidation. The benchmarks erased opening gains as selling emerged in IT counters. Despite some resilience elsewhere, the drag from technology shares was strong enough to pull the indices into the red. Investors also stayed cautious due to global headlines, including continued attention on US-Iran talks in Doha. With fresh triggers limited, traders largely stuck to a defined band rather than taking aggressive directional bets.

IT stocks lead losses as rate worries persist

The IT pack was the biggest source of pressure. The Nifty IT sub-index plunged 2.73% during the session, reflecting broad-based selling in large and midcap technology names. Mishra said concerns about the possibility of higher interest rates in the US continued to weigh on technology stocks. He also flagged fears that elevated borrowing costs could delay discretionary spending by global clients, which is a key demand driver for Indian IT services companies. The risk narrative around IT was reinforced by uncertainty on how the current environment could influence client decision-making and deal ramps.

What investors are pricing into IT outlook

Ankur Punj, MD and Business Head at Equirus Wealth, said domestic indices are effectively pricing in slower revenue growth, weaker pricing power, uncertainty over AI’s impact on staffing, and softer margins over the next 12 to 24 months. This framing matters because it links near-term market moves to a longer earnings and execution cycle, rather than a single day of risk-off trading. With IT valuations often sensitive to global growth expectations and US monetary policy, the sector remains exposed to shifts in rate and demand assumptions. As a result, management commentary is expected to remain particularly important for IT as the earnings season approaches.

H1CY2026: benchmarks down about 10%, IT far weaker

Tuesday’s close also capped a weak first half for Indian equities. The Sensex and Nifty have fallen around 10% in H1CY2026, according to the figures cited. The Sensex declined 10.2% and the Nifty50 lost 8.6%, weighed down by geopolitical tensions in West Asia, concerns over global growth, and uncertainty around the US interest-rate trajectory. The IT sector bore the brunt of the selloff over this period. The Nifty IT index tumbled 30.6% in H1CY2026, described as its steepest first-half decline in 23 years, as concerns over prolonged higher US interest rates clouded the outlook for technology spending.

Key levels: support and resistance to watch

Technicals also featured prominently in market commentary as traders navigated the expiry session. Sachin Gupta, VP - Technical Research at Choice Broking, said immediate support for Nifty50 is placed in the 23,650 to 23,700 zone, while resistance is seen in the 24,000 to 24,050 range. He also pointed to derivatives positioning, with notable call writing at the 23,900 and 24,000 strikes and put writing concentrated at 23,900 and 23,800. This setup suggested immediate resistance around the 24,000 mark, with support near the lower strikes.

For the Sensex, Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, said the market bias remains cautiously positive as long as the index sustains above the 76,000 to 76,100 support zone. He placed immediate resistance around 76,800 to 77,000. Tailor added that a decisive breakout above resistance could strengthen bullish momentum, while failure to hold above support may lead to further consolidation.

What markets will track next

Near-term direction is expected to depend on a mix of global and domestic cues. Traders are watching the outcome of US-Iran talks in Doha and crude oil movements, along with upcoming US labour market data including Non-Farm Payrolls. Domestically, the start of the Q1 FY27 earnings season, monsoon progress, and FII flows are key variables being monitored for the next leg of price action. One market view in the text expects the Nifty to remain range-bound between roughly 23,800 and 24,200 in the near term, reflecting the current consolidation tone.

Market impact and why it matters

The day’s decline underlined how sector rotation can dominate index direction even when broader participation appears steadier. With IT acting as the largest drag, index-level moves became more about the sector’s sensitivity to US rate expectations and client spending trends than about domestic growth alone. The first-half performance figures also show a sharp divergence between headline benchmarks and the IT sector, suggesting investors are differentiating between earnings visibility across sectors. In this context, upcoming quarterly results and forward-looking commentary will be closely scrutinised for confirmation on demand conditions, pricing, and cost pressures.

Key data at a glance

Conclusion

Tuesday’s expiry-session decline kept Indian equities in consolidation, with IT stocks driving the downdraft amid concerns about US rates and global technology spending. In the near term, investors are likely to stay focused on geopolitical developments, crude oil, key US data points, and the start of Q1 FY27 earnings, alongside domestic cues such as monsoon progress and FII flows.