By S. JHA
Indian stock markets staged a dramatic recovery on expiry day, with Nifty closing above 23,480 and Sensex ending higher. IT stocks surged nearly 5% as strong earnings and AI optimism boosted sentiment.
Mumbai, June 2, 2026 — Indian equity markets witnessed a dramatic turnaround on Tuesday as benchmark indices erased steep intraday losses and closed in positive territory, supported by strong buying in information technology (IT) stocks and resilient investor sentiment.
Despite opening with a significant gap-down amid weak global cues, the Nifty 50 and Sensex found strong support at lower levels. “Buyers stepped in aggressively around mid-day, helping the market recover all its earlier losses. The Nifty eventually settled at 23,483, gaining 0.43% for the day, while the Sensex also ended higher after a volatile trading session marked by weekly expiry-related swings,” said Angel One in a market note shared with clients.
The standout performer of the day was the IT sector, which extended its recent outperformance. “The Nifty IT index surged nearly 5%, with several leading technology stocks gaining more than 10% over the last two trading sessions,” added Angel One.
Market participants turned increasingly optimistic on the sector, citing attractive valuations and growing opportunities arising from enterprise adoption of artificial intelligence (AI), said the brokerage firm.
Among major gainers, shares of leading IT companies such as Infosys and TCS witnessed strong buying interest as analysts highlighted AI-driven business opportunities rather than viewing AI as a disruptive threat to traditional IT services.
Global market sentiment also aided the recovery. While US markets ended on a muted note overnight, Asian and European markets traded firmly in positive territory, providing support to investor confidence across emerging markets, including India.
“On the earnings front, India Inc. delivered a strong fourth-quarter performance. Corporate profits rose 16% year-on-year, surpassing analyst expectations. Banking and financial services (BFSI), metals, and oil marketing companies emerged as key contributors to earnings growth,” said Angel One.
Companies including Bharti Airtel, HDFC Bank, Infosys, TCS, and JSW Steel accounted for a significant portion of the incremental profit growth during the quarter, it added.
Technical Outlook
According to market analysts, the Nifty successfully defended the crucial support zone between 23,250 and 23,200 despite the initial selloff, indicating the presence of buyers at lower levels.
“Going forward, sustaining above this support band remains critical. If the index holds above 23,250–23,200, analysts do not anticipate a major downside extension,” Angel One added. However, a breakdown below this zone could accelerate selling pressure, initially dragging the index toward 23,100, where a bullish gap support exists. Further weakness could expose the market to a retest of the 22,700–22,600 region, which coincides with the 78.6% retracement level of the previous rally, said the analyst.
On the upside, the immediate resistance zone is seen between 23,550 and 23,600. “A stronger hurdle awaits in the 23,750–23,950 range, where both the 20-day and 50-day exponential moving averages are currently positioned,” added Angel One.
Meanwhile, foreign portfolio investor (FPI) participation remains subdued. “Net FPI equity investments in India have slipped to a near-decade low of ₹7.3 trillion, reflecting softer earnings growth expectations and lower exposure to global AI and semiconductor investment themes,” said Angel One.
With IT stocks showing renewed strength and earnings remaining supportive, investors will closely watch whether the Nifty can sustain above key support levels and build momentum for a broader market recovery.
(Disclaimer: This article is only for informational purposes only. Please consult SEBI-registered advisor for investment decisions.)
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