loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Broader Markets Outperform as Nifty Defies Volatility

ICICIdirect Research 08 May 2026 DISCLAIMER

Indian markets consolidated this week, as likely possibility of some resolution emerged on US Iran conflict. Also, pockets of earnings resilience were seen in select IT tier 2/3 names, BFSI and Capital Goods companies which announced results this week.
The market also celebrated the state elections results, wherein ruling party consolidated with higher number of state wins and thereby, reflecting stability and continuity.  The positive rub through was seen in midcaps and smallcaps as Nifty Midcap surged 3.6% to hit a fresh record high, while Smallcaps rallied over 4%, this week.
As we move to the week ahead, we expect market to largely follow earnings momentum trend which has been resilient, so far coupled with development on US Iran conflict.

Broader Markets Outperform as Nifty Defies Volatility

  • Despite geopolitical turbulence, equity benchmarks finished a volatile week on a positive note, settling at 24,200 with an 0.8% gain. The broader market stole the spotlight; Nifty Midcap surged 3.6% to hit a fresh record high, while Smallcaps rallied over 4%.
  • Sectorally, Auto, Defence along with Capital market were the prime leaders while IT, Consumer Discretionary relatively underperformed   
  • Brent Crude oil once again retreated from $120 mark and seen 20% correction that fuelled momentum in the equities

What Happened:

  • Over the past three weeks, the index successfully navigated a period of healthy consolidation while absorbing headwinds, including geopolitical tensions and spik in crude prices.
  • Yet maintained its technical strength by holding its 20-day EMA and retraced only 38% of its previous three-week rally (11%), signalling robust price structure.

What we expect:

  • Current higher base formation has set the stage for Nifty to challenge milestone of 24900 in the month of May that would eventually open the door for extension of ongoing up move towards 25500 in coming the coming quarter. Meanwhile, 23500 would continue to act as strong support.
  • The current up move is supported by across all sector participation backed by strong market breadth along with better-than-expected earnings in some of the pockets that augurs well for durability of ongoing up move
  • While Midcaps are at record highs, the Nifty remains 8% below its peak. Further, breakout on ratio chart of Nifty 500 vs Nifty 100 bodes well for broader market outperformance against large caps
  • Given the positive correlation between the Nifty and its global peers, the current buoyancy in US as well as some of Asian equities provides a strong tailwind for a catch-up rally in the domestic market

 

Key Monitorable:

  • Inflation data US & India
  • IIP 

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere