Where is the market headed?
Friday the 13th truly lived up to its reputation, bringing a fresh round of turbulence to the markets. Nifty saw a substantial drop, adding to an already volatile week with no signs of relief from persistent negative news flow.
Tensions in the Middle East escalated sharply today as Israel launched an attack on Iran, followed by a swift counter-response. Reports suggest around 100 drones were deployed, raising concerns of further escalation in the days to come.
As the market continues to absorb the shockwaves from this geopolitical development, the broader sentiment remains fragile. After reeling from Thursday’s sell-off, Friday brought yet another blow, capping off a particularly tumultuous week.
Market Overview
Since the previous session, the market has declined by 0.68%, pulling back into the familiar congestion zone that has persisted for an extended period. This return to a well-worn range highlights the market’s ongoing struggle to break out decisively in either direction.
Nifty Next 50
Nifty Junior also ended the session in the red, registering a decline of 0.83%.
Nifty Mid and Small Cap
Mid-cap stocks closed 0.36% lower, while small caps slipped by 0.38%, reflecting subdued sentiment across the broader market.
Bank Nifty
Bank Nifty experienced its sharpest decline at the opening, which turned out to be the day’s low. By the close, the index had fallen 0.99%, marking a notably weak session.
GOLD
Gold witnessed a sharp jump of 1.8%, reaching ₹10,046 per gram. The surge reflects heightened investor interest amid prevailing market uncertainty.
Advance Decline Ratio
The market opened with weak breadth—declines far outpacing advances. However, as the session progressed, some recovery was observed. Declines reduced gradually, and by the end of the day, the breadth stabilised. The final advance-decline ratio stood at 133 to 366, still skewed towards declines, but notably better than earlier in the session, indicating that the deterioration did not worsen further.
Heat Maps
The Nifty heat map painted an all-too-familiar picture—dominated by red. Heavyweights like Reliance, HDFC, State Bank of India, ICICI Bank, Hindustan Unilever, ITC, and Adani Ports all traded in the red. A few outliers such as Bharat Electronics, ONGC, and Tech Mahindra managed to hold ground in the green.
In the Nifty Next 50 segment, InterGlobe Aviation (IndiGo) dropped 3.92%, likely reacting to the Air India incident and the ongoing promoter stake sale. Canara Bank fell 3.6%, while Chola Finance, PFC, IRFC, LIC, Adani Green, United Spirits, IOC, and BPCL also saw declines.
Interestingly, despite rising crude prices—which typically benefit oil marketing companies by boosting operating margins—stocks like IOC and BPCL faced selling pressure, suggesting broader market sentiment continued to weigh heavily on even the fundamentally advantaged segments.
Sectoral Overview
In sectoral trends, defence emerged as the lone standout. The escalating Iran-Israel tensions brought the spotlight back on the defence space, driving stocks in the sector up by 1.5%.
Apart from defence, the broader market remained largely muted. Notable declines were seen in Nifty PSU Banks, FMCG, and select Metal stocks, each falling by more than 0.9%. Private banks also witnessed a mild pullback, reflecting the broader cautious sentiment prevailing in the market.
Sector of the Day
Nifty PSU Bank Index
The Nifty PSU Bank Index declined by 1.18%. Major contributors to the weakness included Canara Bank, Union Bank, Indian Overseas Bank, State Bank of India, and Punjab & Sind Bank, all of which lost ground during the session.
Nifty IND Defence
India Defence, which had been undergoing profit booking over the past five sessions, saw a strong rebound today with a 1.5% gain. Stocks such as Unimec, Zen Tech, Paras, Garden Reach, and BEML led the advance, regaining ground amid renewed buying interest.
