Transcription
Hello friends, welcome to the Evening Report, and today was a day of heavy volatility, and the most surprising thing was the IT sector. The big rally that happened yesterday saw an even bigger fall today. Not only did that rally end, but there was a greater decline. Why did this decline happen? What did FIIs do today? What happened in Bank Nifty? We will discuss all this in detail. A very warm welcome to you. Please like and share the channel. Subscribe as well, and let's start with what the big picture is at this moment.
So the market was extremely turbulent with a large sell-off in IT stocks putting pressure on the Nifty. At the same time, the LTCG cut, hope, hope, it didn't happen. The Nifty ended 77 points down. Heavyweights like TCS down 9%, Infosys down 4%, and the Nifty IT fell almost 5.5%, making it the worst performing sector. Nifty Bank made a huge comeback from lower levels, rising 471 points, with SBI gaining the most due to the spike in crude oil. There was a rise in crude oil, it reached close to 100 again, which reached $99 per barrel. The rupee depreciated to about 95.64 per dollar, and FIIs made a net sale of 5616 crore today as well. This is the broad picture of the market.
But it is important to understand this in more detail, and what else happened is very interesting for you to see today. So, weakness in Nifty, weakness in the Sensex, but there was strength in Bank Nifty. Mid-caps also fell, small-caps remained flat by eight points. Micro-caps showed a slightly better performance here. But the most important point you will see here. Look at this, it's blood red: TCS, Infosys. Yesterday I was surprised that a 6.5% rally in TCS in one day is quite big. Today, it turned into a 9% fall, on the lower side. We will also talk about why this happened.
So, in this entire heatmap you are seeing, support is only from banks. HDFC Bank, SBI, ICICI, Kotak - all of them provided support. But there was pressure in the rest of the market. Almost all major sectors were under pressure. Especially the IT sector saw very significant pressure. Two-three news items were floating in the market today. One news item was floating that the RBI sold gold. After that, Bloomberg ran this news. We discussed this in the morning. By afternoon, the RBI's denial came that this news is incorrect, and PTI PIB, the government agency, also fact-checked it and stated that the news is incorrect. All the denials went everywhere. Later, there was also some confusion with some data points. Now, we won't get into the dispute of who is right and who is wrong. But this news was also circulating in the market, which also caused pressure initially.
At the same time, there was a sell-off in IT right at the opening. There was a sell-off right at the opening. So, if you were connected to the TNS morning show, we informed you beforehand. In today's morning discussion, I discussed that a report came from a broking house regarding Accenture, which downgraded it from 'buy' to 'hold' and set a target of $210. Accenture's stock fell by 5%. Because of that broking firm, since Accenture's business nature is similar to our IT companies, and the reasons they gave were geopolitical tensions, AI disruption, and questions on the time and material model - all those things that I discuss with you daily were also in that Accenture report, and because of that, IT fell at the opening with a gap down, and then there was a massive sell-off in the entire sector, a massive sell-off. So, this built pressure in the market, and at one point, the Nifty went down by more than 300 points. There was a big sell-off in Nifty or across the market. Bank Nifty was falling badly, mid and small caps were also beaten down. So, one negative news was circulating, the IT one. The second negative news was that the RBI sold gold. Why it sold, how much it sold, why it sold - all this was going on. In the afternoon, when the denial came from the RBI and PIB fact-checked and said the news was not correct, the market recovered. At the same time, news also spread that a cabinet and CCA meeting was happening today. Perhaps the government might make an announcement regarding taxes like LTCG. A press briefing was scheduled for 3 PM or 3:15 PM. So, the market saw a very sharp recovery on the denial of the gold news and the expectation of a tax cut, which we see.
Let's continue this discussion. It was breaking badly before, but as soon as there was a whisper that the gold news was denied and it's not true, and something could happen in taxes, the government is thinking, there was an immediate recovery. And when this press conference happened at 3:15 PM and the tax news was not there, it was not among the six decisions taken. It was a decision of the CCEA. We don't have information yet, maybe it will come later, from somewhere. I don't know. The government is thinking. I don't know. But it didn't happen, so Nifty fell again. Otherwise, Nifty might have closed in the green. But Nifty fell and closed 77-78 points in the red. Bank Nifty, look at the Bank Nifty chart. Bank Nifty made a tremendous recovery. Because by then, the currency had also started strengthening. There was a huge recovery in currency, so there was strength in banks too, and at the same time, but there was no fall in banks. The recovery continued in banks, and it closed with a recovery of almost 475 points. The hope trade was built there more because the news that was supposed to come for banks was in confusion, there was no certainty there, hence the recovery happened. But there was no recovery in IT because it was known that nothing can happen in this. It is falling on that report, isn't it? Because of that report, IT fell. So, IT, which drove the market yesterday, pulled the market completely down today and pulled it down badly.
Understand the composition of Nifty: Bank, IT, and Reliance. These three sectors - you can even call RIL a sector in itself because its weight is the highest. So, if banks move, it will affect Nifty. If IT moves, it will affect Nifty, and if Reliance moves, it will affect it. And the same vice-versa will happen. So, what was happening today? IT was being hammered, so its pressure caused the market to fall, but the entire banking sector recovered. So, Bank Nifty fully recovered because the banking sector recovered. Nifty also recovered, but it still closed 70-78 points down because how much recovery will banks bring? Banks are not the only component of Nifty; IT is also there in Nifty. So, in the tussle between IT and banks, Nifty was under pressure because IT's weight was heavier. The entire IT sector fell, and the entire banking sector moved up. So, that's why you will see Nifty fell less, only 78 points, it couldn't recover. But Bank Nifty fully recovered and became very positive.
So, in this entire exercise, the levels have no meaning. That it closed above 54,000, therefore Bank Nifty is very strong, and Nifty went down to 23,150. Its low was 23,150. It defended that level. Recovery happened, and it closed at 23,405. So, the levels today made absolutely no sense, no meaning, because the way this happened due to news, you should keep that in mind.
Now, look at who the contributors were, which I was telling you about. Who was giving strength to Nifty? ICICI Bank, HDFC Bank, State Bank, Kotak Bank, Axis Bank. The entire banking sector. Who was bringing it down? TCS, Infosys, HCL Tech, Tech Mahindra, Wipro. The entire sector fell badly. Mid, small, large - no IT stock was spared. So, the result of this fight was that Nifty closed only 78 points down, otherwise it was 300 points down. But in Bank Nifty, because it was the banking sector, there are 1400 stocks in it, so they pulled it up.
Now, look at these charts, I will show you some. Nifty, this TCS chart, an 8% fall, boss, a very big fall. I was surprised yesterday itself by a big rally of 6.5%. The game changed in just 12 hours. Some people told me, what's the point of the Evening Report? Why do you make it? This is the point, guru, that what you see in the evening, the context is in your mind, and you see in the morning how the context changes overnight. That's why both reports are important.
Now, look at this. We have taken a one-week chart. On May 2nd, a gap up and exactly at the day's high. On May 3rd, a gap down and at the day's low. You won't find a more dangerous educational chart than this. The day before, exactly one day before, it opened with a big gap up and closed at the day's high. The next day, it opened with a big gap down and closed at the day's low. This is the market. That's why this is the market.
Now, look at Infosys. Same pattern: gap up, day's high; gap down, day's low. Infosys is like this. I am showing ITC because this stock has also been beaten down for many days. I have taken the chart from May 29th, it has fallen continuously. So, we said that because these were contributors, they fell by 2%. They contributed to bringing down Nifty. Look at ICICI Bank. This is not an intraday chart, it's a five-day chart. In this, first, on the 2nd, there was pressure in banks, flat, a slight recovery. On the 3rd, it opened slowly, slowly, and after 12:00 PM, it went almost to the day's high. Reason: hope trade that the gold news is wrong and the government might reject something in taxes. The entire banking sector changed. Provided that on Friday, there is a credit policy, a very important policy, a very important one. Because what the decision will be is less important than the RBI's commentary on growth, inflation, currency, crude oil, and inflation targeting. We will know all this on Friday. So, the banking sector might see heavy volatility for the next two days. Please be very careful, very careful.
Look at the advance-decline ratio: 228, 206, 293, 122, and 1816 and 2393. There is no sense in today's advance-decline ratio because given the picture of the broader market, you cannot form a view by looking at this. In the losers and gainers, look at the IT sector. 5% up yesterday, 45% up, today 5% down. And the second best, second worst sector, not best, sorry, worst sector. 1.39%. Look at the huge gap. Real estate fell, FMCG fell, metals fell. Which ones moved? PSU banks. PSU banks were the most gainers because SBI was leading them. PSU banks, financial services moved, and there was a slight gain of 3% in pharma. So, these were the top sectors.
On June 3rd, FIIs sold 5616 crore in futures. Cash market and DIIs bought 5740 crore. People matched it, okay. But look, it's the third trading session today: Monday, Tuesday, Wednesday. One, two, three. The first week of the month is not even over, and the score is reaching 18,000 crore of selling and 20,000 crore of buying. You may or may not be aware, but FIIs have sold more this year, i.e., in these five months of 2026 till date, than they sold in the entire previous year. The entire sixth month has just begun. In the next weekend show, we will discuss this a bit with Sunil ji, that only five months have passed, and this is the situation. Last year's selling has already been surpassed. The entire year is still left.
So, I once jokingly asked Sunil ji, "Sir, only 5 months have passed, and this is the situation." He said, "Why are you thinking so negatively?" I said, "Sir, even if they sell 2000 crore, another 12,000 crore will be added to it." He said, "They might even buy." I said, "It's quite possible that from June onwards, they might become only buyers." But today's data shows you that, doesn't it? So, 5600 crore of selling is not an easy thing, not a small thing. It's a big thing.
What happened in gold and silver? Now, because crude has reached close to 100, reaching 98-99, gold is a bit cool, but not very high. It's hovering in its usual range of 44-45, 44-44. And silver is also in the same range. Bond yields haven't moved much, they are at seven, okay. Look at the rupee, it weakened again today, trading at 95.9. When we made this show, in short, today was a day of heavy confusion due to the coming and going of news, and hope, and the opposite of hope, what do you call it, very disappointing reports. All these together made the market move left, right, and center.
So, today's Evening Report says that tomorrow and the day after, two more days are left, plus the policy. In this regard, these two days will be very important because there has been confusion regarding the gold news. Because it is being reported in many places that the gold data shown by the RBI is not for May, but up to April, and there is a mismatch. Although the RBI had previously clarified that the data is correct. Now, God knows, I don't know what it is. Whatever confusion there is, it is going on. It is going on fiercely on Twitter.
So, due to one of these, what will happen? Second, will there be a sigh of relief in IT tomorrow? Third, ahead of the credit policy, will bank stocks be able to maintain their strength? Because on Thursday, at 10:00 AM, the credit policy will be announced on Friday. Now, tomorrow you have a full day. After that, on Friday, you can say that from 3:15 PM to 10:45 AM. I don't think anyone will do so much pre-positioning. So, in anticipation of the policy, you will see movement in Bank Nifty and bank stocks tomorrow. I don't know which side it might be, but it will happen.
So, today's Evening Report says that today's market was shaken, it was shaky. It had so much volatility that there were many difficulties. Tomorrow, we will see what happens in the next 12 hours. So, the importance of the Evening Report is only this: what happened throughout the day today and why. Against this backdrop, if you understand the market tomorrow morning, you will benefit a lot. I hope you liked it. Like it, share it, subscribe. We work so hard for you, so subscriptions are a must, brother. It's free. You don't have to spend any money on it. You just have to click the button, what else do you have to do? So, we meet again tomorrow morning at 6:55 AM. Thank you so much for joining us, and we hope you have a great evening.