Where is the market headed?

Until the 7th of May, the strikes were mostly targeting terrorist establishments, but now sovereign establishments are also being hit. This indicates a full-blown war scenario. The nature of wars is unpredictable—no one knows how long they’ll last or how big they’ll get. Historically, once damage begins and neither side backs off, situations can spiral.

From an economic point of view, this could cause severe damage, especially if it stretches beyond a couple of weeks. Pakistan may run out of funds soon, potentially limiting the war’s duration. For now, we can only wait and watch.

Market Overview

The market opened with a significant gap down, and despite attempts to recover throughout the day, the Nifty ended down by 1.1%. As of 2025, the position remains relatively stable.

Nifty Next 50

The Nifty Next 50 saw a decline of 0.37%. Despite opening lower, it experienced a substantial recovery, closing nearly 1000 points higher from its morning low.

Nifty Mid and Small Cap

The Mid Cap index closed slightly positive at 0.02%, while the Small Cap index ended with a modest loss of 0.66%.

Bank Nifty

The Bank Nifty was significantly impacted, down by 1.42%, reflecting heavy sell-offs in the banking sector.

GOLD

Gold prices hovered near the 96,500 mark for 10 grams, with a slight increase of 0.37%. The price remains stable within the 95,000-98,000 range.

Advance Decline Ratio

After the initial gap down, the gainers continued to climb, although they didn’t manage to surpass the losers. The losses at the start of the day reduced by the end.

Heat Maps

The heat maps showed a predominantly red market. Key losers included HDFC Bank, ICICI Bank, Bajaj twins, Reliance, and ITC. On the upside, Titan, Tata Motors, BEL, and L&T stood out in green.

Sectoral Overview

The sectoral performance showed mixed results. The defense sector stood out with a 3% gain, driven by stocks like DCX and Paras. PSU banks rose by 1.6%, contrasting with a 1.3% decline in private banks. Media saw a minor increase of 0.9%, while real estate faced a sharp 2.4% decline, with major stocks like Lodha and DLF losing ground. Financial services and the capital market sectors also saw declines, down 1.8% and 1.5%, respectively.

Sector of the Day

Nifty Realty Index

The real estate sector faced a major downturn, with key stocks like Lodha, DLF, Raymond’s, and Prestige seeing significant losses.

Nifty India Defence

Nifty India Defence gained nearly 3% as rising geopolitical tensions boosted interest in defense-related stocks like DCX Systems, Paras Defence, and Bharat Dynamics.

No ‘Story of the day’ for today as we are doing Ask WeekendingInvesting Round 41. If interest, you can watch that video now.

WeekendInvesting launches – The Momentum Podcast

In this episode of the Momentum Podcast by Weekend Investing, we sit down with Sudheer , a software engineer from Infosys who shares his honest and inspiring investing journey—from early losses in derivatives and scams to his turnaround using Weekend Investing’s smallcases.

💡 Hear how Sudheer allocates ₹30,000/month, balances risk with gold, navigates market dips confidently, and the crucial mindset shift he learned through momentum investing.

👉 Don’t miss Sudheer’s powerful advice for new investors and the importance of discipline and long-term thinking.

Fill in the form below to be part of this exciting series : https://forms.gle/HDbEk9xrTjVecW2c9

Disclaimers and disclosures : https://tinyurl.com/2763eyaz