Daily Market News Update — 03rd-04th June 2026

Midnight News Update: 03-04 Jun 2026

A day after the sharp rally, the stock price of TCS crashed 9%. On 03-June, the stock of TCS touched a 6-year low price. AI disruption fears were back to spook tech stocks. The US markets are now expecting 3 big IPOs from SpaceX, Anthropic, and OpenAI; which are expected to have a combined market cap of $4 trillion. Of these, Anthropic and OpenAI present the biggest risks to the existing outsourcing models of Indian IT companies. The sharp fall in TCS dragged the IT index lower by 5.6% for the day. TCS is down 23% in 2026 and trades at a 30% discount to its average P/E.

The Cabinet cleared a ₹10,000 crore package to stabilize ATF (aviation turbine fuel) prices and help the airline companies shield from a crude shock. The benefits of this ATF stabilization fund will be administered to aviation companies through OMCs. ATF prices have shot through the roof due to the ongoing US-Iran war and that led to Indigo reporting a big loss in Q4FY26. It will be a self-liquidating fund where the amount will be collected back by the government from the OMCs, once the ATF prices come down. Current under-recoveries for OMCs on ATF is ₹30 per litre.

In the month of May 2026, UAE exported more oil to India than Saudi Arabia. Of course, Russia still remains the largest supplier of crude to India at 1.9 million bpd. Interestingly, UAE had re-routed its supplies to India through the Fujairah and Yanbu pipelines. At 5.40 lakh bpd, UAE crude exports to India were substantially more than Saudi Arabia’s 3.98 lakh bpd. Saudi oil exports to India were sharply hit by the blockade of the Straits of Hormuz. However, these supplies are still insufficient as nearly 50% of India’s oil supply from the GCC region came through Straits of Hormuz.

The last 3 months saw a sharp outperformance by small cap funds, followed by mid-cap funds. While small cap funds returned 8.84% in 3 months, mid-cap funds gave 3.83%, followed by multi-cap funds 2.43%. Among the laggards were large & mid-cap funds -0.79%, flexi-cap funds -0.12%, and large cap funds -3.22%. With their low-leverage and focused business models, the small cap funds and the mid-cap funds put up a much better show than the large cap plays, which were more vulnerable to the geopolitical risks. The results have been similar over 1 year period too.

Godrej group has launched its wealth management business and is targeting assets under management (AUM) of nearly ₹1,00,000 crore over the next five years. The group will invest ₹7,000 crore into its financial services business with the wealth management business focusing on the Affluent and the HNWIs. Godrej sees wealth management as a core long-term growth driver for its financial services vertical. The are pegging financial services to be around 10% of group value. They will target individuals with an investable surplus of ₹2 crore and above.

According to a CRISIL report, the margins of auto component companies may soften to the range of 10.5%-11.0% in FY27. This is largely on account of higher steel and aluminium prices, as well as higher freight costs. However, sales is expected to be robust amidst high OEM demand and the big pivot towards EVs. In the auto components space, raw materials account for 75% of the total costs, so the sensitivity to input prices is quite high. The auto component companies are likely to benefit from OEM business, strong CV activity, and sustained premiumization in 2-wheeler segment.

Aurobindo Pharma is entering into the biologics contract manufacturing space. It is setting up a ₹1,200 crore facility for the same in the state of Telangana. The biologics contract manufacturing plant, TheraNym, will produce biologics medicines for the global market. Contract manufacturing has seen a rapid growth in India, considering the cost and skill advantages that India brings to the table. Aurobindo has already signed up MSD Pharma of the US as its first major client. Aurobindo sees biologics CDMO as the major growth trigger for the company in coming years.

Enforcement Directorate (ED) simultaneously conducted raids on several Vedanta facilities across India over alleged FEMA violations. The ED conducted search operations at the Mumbai and Delhi offices of Vedanta. The probe pertains to the payment of royalties by Vedanta Ltd to its parent, Vedanta Resources PLC of UK. The group has substantial debt in the name of its parent company and it has been using the cash flows from cash rich companies in India like Vedanta and HZL to pay dividends and royalties to the parent. The company has been cooperating with the authorities.