Daily Market News Update — 01st June 2026

Midnight News Update: 31-01 Jun 2026

The market cap of 7 out of the 10 most valuable companies on the NSE eroded by ₹1.54 trillion as stocks heavily sold off on Friday due to the MSCI rebalancing. Among big losers, Reliance Industries gave up ₹46,078 crore, HDFC Bank ₹33,333 crore, Bharti Airtel ₹25,409 crore, TCS ₹22,921 crore, Hindustan Unilever ₹13,170 crore, Bajaj Finance ₹7,253 crore, and ICICI Bank ₹6,311 crore. There were also select gainers with L&T gaining ₹20,605 crore, SBI ₹13,754 crore, and LIC ₹6,040 crore. The 5 most valuable companies in India are Reliance, HDFC Bank, Bharti Airtel, ICICI Bank, and SBI.

Shares of Zepto have seen a price crash of over 30% in the unofficial IPO market since the IPO was announced. Zepto, along with Instamart and Blinkit, dominates the quick commerce space in India. The sharp fall is reflective of overall bearish sentiments in the market, fund-raising challenges for digital companies, and a broad depletion in pre-IPO valuations. Prior to the IPO announcement, the shares were changing hands in the unofficial market at around ₹52 per share, but has since fallen to ₹40 per share. However, the unofficial market does not have any trading legitimacy.

According to a CRISIL note, profits of Indian banks will taper in FY27 due to a fall in treasury gains and higher ECL provisioning. This will lead to a fall in return on assets (ROA) of Indian banks. While net interest margins (NIMs) will be stable, credit growth will continue outpacing deposit growth. ROA may compress from 1.3% to 1.1%. With deposits growing about 300 bps slower than loans, most banks are relying on short-term CDs to fund the gap, which can raise the cost of funds. The modified expected credit loss (ECL) provisioning rules are likely to be a profit dampener in FY27.

The sharp fall in the stock market on Friday in the last hour was triggered by a major bout of FPI selling on account of the MSCI EM index rebalancing. In the last one hour, the Sensex swung from gains of over 400 points, to losses of nearly 1,200 points. The MSCI rebalancing impact alone erased around ₹5.70 trillion from India’s market cap. FPIs were net sellers of ₹20,637 crore on Friday, due to the MSCI rebalancing. Typically, the impact gets accentuated by HFT trades that are built around the FPI selling trend. India MSCI-EM weight has fallen over 800 bps since its 2020-peak.

Former Finance Secretary, Montek Singh Ahluwalia, has cautioned that the rupee could go beyond ₹100/$, considering the Middle East turmoil. However, he also warned that the price of Brent Crude could stay above $100/bbl for a sustained period of time. Montek has urged policymakers not to worry too much about the weakening rupee as it has positive ramifications for exports. For India, sustained high prices of crude is a matter of concern as India relies on imported crude for meeting nearly 85% of its daily oil needs. India runs supply chain risks on oil, gas, and fertilizers.

Indigo Airlines reported a net loss of ₹2,537 crore for Q4FY26 amid rising fuel prices and forex turbulence. In the fourth quarter, the Middle East flight disruptions and currency exposure led to a forex loss of ₹4,823 crore. Revenues were still up by 1.3% yoy at ₹22,438 crore for Q4FY26. Nearly 60% of Indigo’s costs are linked to the dollar and that was a key reason for its huge losses in the fourth quarter. Also, it had to suffer substantial route disruptions as well as limits on fare hikes due to weak demand overall. For the quarter, passenger load factor (PLF) fell 170 bps to 85.8%.

There is a paradox at play. More Indians are stopping SIPs, but gross SIP flows are still robust. SIP stoppage ratio was above 100% in March and April 2026. In March 2026, SIP stoppage ratio was 101.2%, but gross SIP flows touched a record ₹32,087 crore. Remember, when a SIP account is closed, it could also be that the person has forgotten to renew the SIP. Also, SIP assets now account for 21% of total AUM, while SIP folios are over 40% of overall folios. It appears to be a case where new SIP investors are churning aggressively but the legacy investors are staying invested in SIPs.

The Burmans of the Dabur group plan to unlock value worth ₹11,000 crore through their insurance unit. It has approved vertical demerger to spin off its financial services arm, Care Health Insurance, into a separate entity altogether. However, Care Health was part of the Religare group, so it comes with a lot of baggage, including allegations of diversion of ₹2,300 crore from the NBFC arm. Burman family became promoters of Care Health after a tough battle. Now it will be split into Health Insurance, SME Lending, Stock Broking, and Housing Finance businesses and sold separately.