Indian benchmark indices ended lower for the fourth consecutive session, extending their losing streak as escalating military tensions between the US and Iran, weak monsoon forecasts, and sustained foreign institutional investor (FII) outflows triggered broad‑based selling. The BSE Sensex plunged 508.40 points or 0.68% to close at 74,267.34, while the Nifty 50 tumbled 165.15 points or 0.70% to settle at 23,382.60.
🔵 Key Driver: Geopolitical escalation after US airstrikes near the Strait of Hormuz, weak monsoon progress (first week June), and FII selling of ₹1,823 crore (provisional) weighed heavily. The Bank Nifty fell 431 points, dragged by HDFC Bank & ICICI Bank. Nifty Midcap 100 fell 1.02%, Smallcap 100 declined 0.95% — broader weakness intact.
🇮🇳 Rupee Weakens to 95.23 on Risk Aversion: The rupee depreciated 18 paise to close at 95.23 (provisional) against the US dollar on Monday as risk-off sentiment surged after US‑Iran clashes. The rupee opened at 95.05 and touched an intraday low of 95.35, tracking global equity selloffs and strong dollar demand from oil importers.
🛢️ Crude Rebounds Above $94: Brent crude futures rose about 1.4% to $94.50 per barrel after the US launched limited strikes against Iranian-backed assets near the strait of Hormuz. Markets now price in higher geopolitical risk premium, reversing last week's ceasefire optimism.
📉 FII Flows (Provisional, 1 June): Foreign portfolio investors (FPIs) sold shares worth ₹1,823.00 crore (provisional), while domestic institutional investors (DIIs) were net buyers to the tune of ₹2,910.00 crore, providing some cushion but unable to prevent the decline.
Monday's session marked the fourth straight day of losses, with the Nifty breaching 23,400 amid escalating geopolitical tensions and heavy FII selling. The index fell 165 points, while Sensex crashed 508 points. The geopolitical risk premium returned sharply after US airstrikes near the Strait of Hormuz, reversing last week's ceasefire optimism.
✅ Key positives: IT index showed mild resilience (+0.35%) as defensive buying emerged | DIIs stepped in aggressively with ₹2,910 crore inflows, limiting deeper damage | India VIX although up, still below 17, not showing extreme panic.
⚠️ Key negatives: Nifty closed below 23,400 — weakest level since mid‑May | FII selling continued for fourth straight session | Oil & gas and metal stocks bled on crude spike and risk-off | Weak monsoon start adds macro overhang.
What's next: A decisive close below 23,250 would open downside towards 23,000–22,850. Immediate resistance stands at 23,550–23,650. Traders should track US‑Iran news flow very closely — any truce could trigger sharp short‑covering rally. Until then, stay light, prefer IT & domestic‑focused names.
This publication is solely for informational and educational use. It does NOT constitute investment advice, a research report, or a solicitation to buy/sell securities. The author/publisher is NOT a SEBI-registered Research Analyst. All data sourced from publicly available exchange filings, NSE/BSE official websites, and brokerage updates as of 1 June 2026 (provisional).
Investments in securities are subject to market risks. Past performance is not indicative of future results. Readers are strongly advised to consult a SEBI-registered investment adviser before making any financial decisions.
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