Market wrap - 2nd june

Hi guys, welcome to Market Wrap. Today, we’ll take a look at how the market performed, analyze index movements, identify which sectors were trending, and discuss what the market trend might look like in the coming days. Nifty opened with a gap down today and eventually closed 34 points lower by the end of the day. However, it is still consistently closing above its 21-day moving average, which is a positive sign. Even though Nifty dipped below the 21-day moving average during the session, the encouraging part is that it managed to close above that level again. Looking at index performance, small caps rose by 0.7%, mid caps gained 0.5%, Nifty Next 50 increased by 0.4%, while the Nifty 50 saw a minor decline of 0.14%. Over the past week, mid caps and small caps have clearly been outperforming, whereas large caps, especially those in Nifty 50 and Nifty Next 50, have been lagging behind. Turning to sectoral performance, Nifty Realty was the top gainer today with a rise of 2.31%. Within this sector, Brigade Enterprises surged 7.5%, and Prestige Estate was up 5%. The Capital Markets Index also performed well, up 2.2%, driven by stocks such as CDSL, which jumped around 10%, and Anand Rathi Wealth and Caffeine Technology, both up 4–5%. PSU banks also showed strong momentum today. As June approaches, these banks are offering attractive dividends—Canara Bank at 3.5%, Bank of India at 3.2%, and Bank of Baroda at 3.35%. On the flip side, the worst-performing sectors were Nifty IT and Nifty Metal, each down by 0.77%. The advance-decline ratio showed strength in mid and small caps with 275 advancing stocks against 225 declining ones from the Nifty 500 universe. Overall, Nifty Next 50 is stuck in a tight range since May 20 but remains above the 21-day moving average, indicating some resilience. Small caps gained today and are steadily moving up. Mid caps paused last Friday but are now forming positive candles again.