Stock Market Crash: Indian equity benchmarks experienced a major decline on Wednesday, June 3, as investors turned cautious amid mounting geopolitical risks, persistent foreign fund outflows and weakness across key sectors. The sharp correction erased more than Rs 3 lakh crore in investor wealth, dragging the combined market capitalisation of BSE-listed firms to nearly Rs 459 lakh crore.
The BSE Sensex plunged over 1,150 points to touch 73,492, while the NSE Nifty 50 dropped around 332 points to 23,151. Market volatility also intensified, with India VIX climbing more than 8 per cent to 16.62 during the session.
Technology stocks emerged as the biggest drag on the indices. Shares of Tata Consultancy Services (TCS), HCL Tech, Tech Mahindra and Infosys declined between 2 per cent and 5 per cent. In contrast, Adani Ports managed to buck the trend and posted gains of around 1 per cent.
The weakness extended beyond large-cap counters. The Midcap 100 and Nifty Smallcap 100 indices fell 0.7 per cent and 0.5 per cent, respectively, reflecting broad-based risk aversion among investors.
Top Triggers For Stock Market Crash
Geopolitical Tensions: Escalating tensions in West Asia remained a key concern for market participants. Uncertainty surrounding the Iran-US conflict and fears of disruptions to global energy supplies weighed heavily on sentiment.
Crude Oil Surge And Weakening Rupee: Oil prices moved higher as concerns persisted over the security of the Strait of Hormuz, a critical route for global energy shipments. Brent crude climbed toward $97 per barrel, while WTI crude hovered near $95 per barrel.
The rise in crude prices also affected the currency market. The rupee weakened by 14 paise against the US dollar in early trade, reflecting concerns over India’s import bill and inflation trajectory.
FII Outflows: Foreign institutional investors continued their selling spree, exerting additional pressure on domestic equities. After significant withdrawals in recent sessions, overseas investors remained net sellers, raising concerns over near-term market direction.
Rising Bond Yields: At the same time, US Treasury yields edged higher. The benchmark 10-year yield climbed to 4.457 per cent, while the 30-year yield approached 4.97 per cent. Higher bond yields generally increase the appeal of fixed-income assets, often leading investors to reduce exposure to equities.
IT Profit Booking: Another major factor behind the selloff was profit booking in information technology stocks. The Nifty IT index had rallied sharply in recent sessions, gaining nearly 8 per cent over three trading days and recording its strongest single-day jump since May 2026. Wednesday’s decline appeared to reflect investors locking in gains after the recent surge.