Sensex slips 304 points to 74,346 as IT stocks crack 5%; PSU banks cushion fall
Synopsis
A brutal 5%-plus crack in the Nifty IT index pulled Indian benchmarks lower, with TCS, Tech Mahindra and HCLTech leading the slide. PSU banks and healthcare stocks kept the damage contained, but a second straight session of rupee weakness — amid fresh Trump tariff noise — signals that the bigger risk for Dalal Street right now sits offshore, not at home.
Key Takeaways
Sensex closed 303.67 points lower at 74,346.17 on 3 June .
Nifty50 ended down 77.95 points at 23,405.60 .
Nifty IT index fell more than 5% , the worst-performing sector of the day.
TCS , Tech Mahindra and HCLTech were the top Sensex laggards.
Nifty PSU Bank led sectoral gainers; healthcare and banking indices outperformed.
Rupee fell for a second straight session amid concerns over Donald Trump's tariff proposals.
The BSE Sensex closed 303.67 points lower at 74,346.17 on Wednesday, 3 June, as a sharp sell-off in information technology counters dragged Indian equity benchmarks into the red, even as buying in PSU banks, private lenders and healthcare names helped trim steeper intra-day losses. The Nifty50 ended 77.95 points, or 0.33%, lower at 23,405.60.
Where the damage was
The Nifty IT index emerged as the worst-performing sector, sliding more than 5% in a single session amid broad-based weakness across technology counters. Tata Consultancy Services (TCS), Tech Mahindra and HCLTech were among the top laggards on the Sensex, accounting for a significant share of the headline index's fall.
The broader market mirrored the cautious mood — the Nifty MidCap index closed 0.42% lower while the Nifty SmallCap ended down 0.11%.
What cushioned the fall
Gains in Apollo Hospitals Enterprise, Tata Motors Passenger Vehicles, InterGlobe Aviation and Max Healthcare Institute helped offset some of the IT-led weakness on the Nifty. Sectorally, the Nifty PSU Bank index posted the sharpest gains, with the Nifty Bank, Nifty Private Bank and Nifty Healthcare indices also outperforming the broader market.
Key levels to watch
‘23,500 remains the key level to watch. A sustained move above this zone could improve sentiment and trigger a recovery towards 23,600 and subsequently 23,800, where significant call-based resistance remains visible,' an analyst said. On the downside, the 23,300–23,350 band is the immediate support, followed by the 23,150–23,200 demand zone that has held over multiple recent sessions, according to the market expert.
Rupee under pressure
The Indian rupee weakened for a second consecutive session, weighed down by capital outflows and mounting concerns over US President Donald Trump's latest tariff proposals. ‘Technical Outlook: Spot USDINR faces immediate resistance at 96.50, with key support holding at 95.10,' an analyst noted.
What's next
Market participants are expected to stay cautious as long as IT counters remain under pressure, with the rupee's trajectory and global tariff signals likely to drive near-term direction. A decisive close above 23,500 on the Nifty would be the first technical cue for a recovery attempt.
Point of View
The IT pain and the currency pain share one root cause. Until that external overhang clarifies, every relief rally in tech should be treated as tactical, not structural.
NationPress
5 Aug 2026
Frequently Asked Questions
Why did the Sensex and Nifty fall on 3 June?
The Sensex fell 303.67 points to 74,346.17 and the Nifty closed 77.95 points lower at 23,405.60, dragged primarily by a sharp sell-off in IT stocks. The Nifty IT index dropped more than 5% in the session, with TCS, Tech Mahindra and HCLTech among the worst performers.
Which sectors gained despite the market fall?
PSU banks led the gainers, with the Nifty PSU Bank index rising the most among sectoral indices. The Nifty Bank, Nifty Private Bank and Nifty Healthcare indices also outperformed and helped the benchmarks recover a chunk of their intra-day losses.
What are the key Nifty levels to watch next?
Analysts flagged 23,500 as the key resistance — a sustained move above this could open the way to 23,600 and then 23,800. On the downside, 23,300–23,350 is the immediate support, with 23,150–23,200 as a stronger demand zone that has held over recent sessions.
Why is the Indian rupee under pressure?
The rupee fell for a second consecutive session on 3 June, pressured by capital outflows and concerns over US President Donald Trump's latest tariff proposals. The technical view places immediate USDINR resistance at 96.50 and key support at 95.10.
