Market sinks despite positive start as sentiment continues to be sombre
Nifty closes below 23,400
Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets, both in India and globally.
In our latest episode of In The Money by Zerodha, From the moment you tap buy on Kite to the moment the exchange says complete, your order travels through CloudFlare’s security layer, AWS’s load balancers, dedicated P2P lease lines, physical data centres in Mumbai and Chennai, three layers of internal checks — a mini RMS, the OMS, and the main RMS — and finally to the exchange itself. Seven layers. Hundreds of moving parts. A few milliseconds.
This episode also examines what can go wrong at each stage — from CloudFlare false positives that block legitimate users, to lease line flapping, to the rarest and most disruptive scenario: the OMS or the exchange itself going down.
Markets Today
Nifty opened with a gap up of 107 points at 23,655, recovering from the sharp sell-off seen in the final 30 minutes of Friday’s session. The index saw some early volatility, with the index going above 23,700 briefly in the first few minutes.
However, the momentum faded through the late morning session. Nifty gradually gave up its gains, slipping toward the 23,500 mark by noon as selling pressure emerged across the market.
In the second half, weakness intensified further, with the index making a series of lower highs and lower lows. Nifty slipped below 23,450 after 1:30 PM and continued to trend lower throughout the afternoon, testing the 23,360–23,380 zone in the final hour and eventually settled near lows of the day at 23,382.60.
The session was marked by a positive start that quickly lost steam, followed by persistent selling through the second half, resulting in a close near the day’s lows and extending the recent weakness in the market.
Sectoral Indices Performance
Winners & Losers
Commodities
FII / DII Flows
Here’s the trend of FII-DII activity from the last 5 days:
Thematic Indices
Tijori’s niche indices, where today’s move sorts pockets of the market beyond standard sector baskets. You can also track promoter buying and other interesting stuff, like Capex activity by the companies in the Tijori App’s idea dashboard
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 2nd June:
The maximum Call Open Interest (OI) is observed at 23,900, followed by 23,600, indicating potential resistance at the 23,600 -23,700 levels.
The maximum Put Open Interest (OI) is observed at 23,000, followed by 23,200, suggesting support at 23,300-23,200.
Note: OI is subject to multiple interpretations; however, generally, an increase in Call OI indicates resistance in a falling market, while an increase in Put OI indicates support in a rising market.
Source: Sensibull
Top Stories in India
GST collections moderated to ₹1.94 lakh crore in May 2026 from a record ₹2.42 lakh crore in April, but remained 3.2% higher than a year ago. Net GST revenue rose 3.3% YoY to ₹1.67 lakh crore, indicating continued resilience in tax collections despite the sequential decline. Dive deeper
India’s factory output, measured by the Index of Industrial Production (IIP), grew 4.9% YoY in April 2026, slowing from 5.7% a year earlier. Manufacturing remained the key growth driver with a 6.2% increase, while mining output contracted 5.1%; electricity and gas supply grew 4.9%, and water supply and waste management rose 6.6%. Dive deeper
S&P Global reported that India’s manufacturing PMI rose to a three-month high of 55.0 in May from 54.7 in April, indicating stronger expansion in factory activity. Growth was driven by robust domestic demand, although export order growth moderated compared with the previous month. Dive deeper
Zee Entertainment Enterprises shares gained after the company partnered with FIFA to broadcast 39 major football events in India, including the FIFA World Cup 2026, FIFA Women’s World Cup 2027, and the 2030 FIFA World Cup. Dive deeper
Intel and 3D Glass Solutions have partnered with the Odisha government for a $3.3 billion semiconductor substrate manufacturing project. The facility, to be built in the Bhubaneswar-Khurda region, will focus on advanced semiconductor packaging and glass-core substrate production over the next five to six years. Dive deeper
UPI recorded its highest-ever monthly activity in May, with transaction value rising 3% to ₹29.9 trillion and transaction volume increasing 4% to 23.2 billion. Dive deeper
India’s power consumption rose 11.6% YoY to 164.98 billion units in May, driven by intense heatwave conditions that boosted demand for cooling appliances such as air conditioners and desert coolers. Dive deeper
Tata Motors reported a 17% YoY increase in total commercial vehicle sales to 32,850 units in May. Domestic commercial vehicle sales rose 19% to 30,784 units during the month. Dive deeper
Maruti Suzuki India reported record monthly sales of nearly 2.43 lakh vehicles in May 2026, surpassing its previous all-time high of 2.40 lakh units achieved in April. Dive deeper
Top Stories Globally
Brent crude futures rose toward $94/bbl, recovering part of last week’s sharp losses as uncertainty persisted over a potential US-Iran peace agreement. While both sides exchanged draft revisions aimed at extending the ceasefire and reopening the Strait of Hormuz, markets remained cautious amid a lack of a clear breakthrough. Dive deeper
NVIDIA unveiled its new RTX Spark PC chip, bringing advanced AI capabilities directly to laptops and desktop computers. CEO Jensen Huang said the chip is part of a collaboration with Microsoft to “reinvent the PC” for the AI era, intensifying competition with Advanced Micro Devices, Intel, and Apple. Dive deeper
Berkshire Hathaway has agreed to acquire Taylor Morrison Home for $6.8 billion in cash, expanding its presence in the housing market. The deal marks the first multi-billion-dollar acquisition under CEO Greg Abel since he took over at the start of 2026. Dive deeper
BYD ended its eight-month sales decline streak in May, with global vehicle sales rising 0.3% YoY to 383,453 units. Overseas sales surged 80.4% to 160,644 units, supported by stronger demand for electric vehicles in Europe and emerging markets amid elevated oil prices. Dive deeper
S&P Global reported that Taiwan’s Manufacturing PMI rose to 56.1 in May from 55.3 in April, marking the strongest expansion since August 2021. Growth was driven by a sharp increase in output, supported by stronger demand and inventory build-up amid supply disruptions linked to the Middle East conflict. Dive deeper
South Korea’s exports surged 53.2% YoY to a record $87.75 billion in May, driven by booming demand for technology products. Semiconductor exports jumped 169.4% to an all-time high of $37.16 billion, supported by strong global AI investment, while exports of computers, wireless communication devices, and displays also grew robustly. Dive deeper
Management Chatter
In this section, we highlight interesting comments from the management of major companies and policymakers in the Indian and Global Economies.
India’s commerce minister Piyush Goyal on FTA with the US:
Mostly everything is finalised. As you know, US Ambassador George said that 99 per cent of the things have been finalised. Discussions are going on about small issues, commas and full stops.
“While finalising, how will the legal changes that have taken place in the US be reflected in the final agreement, and what kind of changes will be made accordingly. After finalising that, I am fully confident that, with the US, we will conclude the first tranche of the BTA as soon as possible, sign it and start further discussions on how to have a more comprehensive BTA.” - Link
Arun Kumar Singh, Chairman & CEO of ONGC, on shift toward high-margin gas:
It is a matter of time—perhaps 4 to 6 years maximum—before almost 80-90% of ONGC gas becomes new-well gas under the current policy. You can factor that price into your calculations; at a crude price of 90 dollars, we get 10.8 dollars. We value gas more than oil in the local market for various reasons, primarily because managing gas is less cumbersome, which keeps more money in our pocket.” - Link
Shenu Agarwal, MD & CEO of Ashok Leyland, on the fastest-growing CV categories this year:
“This year, we think the tipper segment and the multi-axle segment would be the fastest-growing segments, followed by the tip-trailer segment. Anything connected with mines, infrastructure projects, or construction projects should show tremendous promise this year.” - Link
Corporate Actions & Events
Corporate Actions
Published by Zerodha. Not investment advice. Data from NSE, BSE, and MCX.
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