Equity benchmarks opened the first trading session of June on a positive note Monday morning, extending gains from global cues, though analysts cautioned that follow-through buying would be key to sustaining the recovery.
The , which closed Friday at 74,775.74, opened at 75,203.02 and was trading at 75,119.05, up 343.31 points or 0.46 per cent, as of 9.18 AM. The , which ended the previous session at 23,547.75, opened at 23,654.50 and was quoting at 23,644.05, a gain of 96.30 points or 0.41 per cent.
The opening was broadly in line with signals from GIFT Nifty, which had been trading around the 23,748 mark before the opening bell, and positive Asian cues, with Japan’s Nikkei and South Korea’s KOSPI touching fresh record highs.
Among the top gainers on the Nifty 50, led the pack, surging 4.75 per cent to ₹4,614.20 against a previous close of ₹4,405.00. rose 3.38 per cent to ₹2,761.90 from ₹2,671.60. The IT pack saw broad-based buying, with Infosys up 2.74 per cent to ₹1,192.70, TCS gaining 1.78 per cent to ₹2,299.10, and Tech Mahindra adding 1.69 per cent to ₹1,509.00.
On the losing side, Hindustan Unilever fell 0.78 per cent to ₹2,136.60, NTPC shed 0.76 per cent to ₹383.95, Eternal declined 0.70 per cent to ₹248.85, Mahindra & Mahindra dropped 0.67 per cent to ₹3,025.30, and Tata Consumer Products was down 0.48 per cent to ₹1,172.70.
The positive opening came after US markets closed May at record levels, with the Dow Jones Industrial Average crossing 51,000 for the first time, the S&P 500 posting its ninth consecutive winning week with a 5.2 per cent monthly gain, and the Nasdaq surging 8.4 per cent in May, driven by artificial intelligence-related demand. Technology stocks outperformed following strong quarterly results from Dell Technologies and Snowflake, with Dell posting a 32 per cent single-day gain after raising its outlook on AI hardware demand.
Despite the firm opening, market participants remained cautious. The session’s backdrop was clouded by unresolved US–Iran negotiations, with US President Donald Trump reported to have sought revisions to the proposed agreement. Crude oil climbed more than 3 per cent Monday as Israel ordered troops further into Lebanon and ceasefire negotiations showed little sign of progress. Brent crude was trading near $93 a barrel, while US crude was around $88–90 per barrel, a development that analysts flagged as a key risk for India given its import dependence.
…”With the uncertainty over the US-Iran deal continuing and Brent trading at about $93, there are no major triggers for the market at the start of this week,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
On the institutional flow front, Foreign Institutional Investors ended May as aggressive net sellers. The May 2026 MSCI Emerging Markets index rebalancing triggered approximately ₹8,000–8,500 crore in passive outflows from Indian equities, contributing to Friday’s sharp late-session sell-off, in which the Sensex dropped 1,092 points and ₹5.77 lakh crore in market capitalisation was erased. Domestic Institutional Investors, however, absorbed much of the selling, recording over ₹82,000 crore in net inflows during May. …”Historically, rebalancing effects are temporary; markets typically recover as the mechanical selling pressure subsides, so there is genuinely nothing to worry about,” said Devarsh Vakil, Head of Prime Research, HDFC Securities.
India VIX, the market’s fear gauge, stood at approximately 16.18–16.19, having rebounded sharply by 8.03 per cent on Friday after several sessions of decline. Analysts noted that a sustained move below 15 would be needed for bullish sentiment to strengthen meaningfully.
…”Any improvement in global risk appetite or moderation in geopolitical concerns could encourage fresh FII participation and provide support to the market,” said Hariprasad K, Founder, Livelong Wealth.
Technically, the Nifty faces resistance in the 23,800–24,000 zone. …”A decisive breakout above 23,800 on Nifty will be crucial for further upside momentum in the coming sessions,” said Aakash Shah, Technical Research Analyst, Choice Equity Broking.
Investors were also watching for May auto sales data and the Reserve Bank of India’s monetary policy decision due June 5, with the RBI’s commentary on growth and inflation expected to set the tone for markets through the week.