Pricey valuations and fading earnings growth prospects are prompting caution among top fund managers. Abhishek Singh of DSP Mutual Fund has raised cash holdings in a large-cap fund to 13% amid concerns over India s slowing economy and global volatility. Singh warns investors to temper return expectations, anticipating sharp rallies and crashes as valuations remain elevated.

Amid India-Pakistan tensions, the spotlight is on defence stocks, though market enthusiasm remains muted. Analysts suggest companies with strong financials and alignment with national defence objectives stand to benefit. While some stocks like Bharat Dynamics and Mazagon Dock Shipbuilders have performed well, valuations appear high, advising caution for new investors and suggesting a wait for better entry points.

Paras Defence and Space Technologies surged 7.8% after announcing a board meeting on April 30 to consider its first-ever stock split and dividend declaration alongside Q4 results. No further details were disclosed. The stock has rallied over 50% in the past year, with strong gains across six months, three months, and one month periods.

Indian markets soared, with Sensex surpassing 80,000, fueled by Reliance Industries strong earnings and positive Asian market cues. FII buying, a weakening dollar, and lower crude oil prices further boosted investor sentiment. Despite India-Pakistan tensions, most sectors traded positively, led by PSU Banks and Oil & Gas. Market capitalization surged significantly, reflecting broad-based gains and optimism.

Motilal Oswal Financial Services reported its first quarterly loss in five years, with a Q4FY25 net loss of Rs 63.2 crore, driven by a sharp fall in fair value changes. Shares fell 12.6% in two days. Despite the loss, wealth and asset management businesses posted strong growth. The company also approved a Rs 3,000 crore NCD fundraise.

With rising volatility in stocks, bonds, and the U.S. dollar, economists are sounding alarms about a possible recession, intensifying worries among retirees.

Gold prices are consolidating after profit booking, with MCX June futures opening lower at Rs 94,812/10 grams. Silver May futures also declined to Rs 95,800/kg. Prices weakened following U.S. President Trump s indication of reduced tariffs on Chinese imports, impacting safe-haven demand. Analysts suggest potential volatility amid dollar index fluctuations and upcoming U.S.

Geopolitical tensions between India and Pakistan are simmering. Swaminathan Aiyar suggests a possible military response if India acts. He highlights Modi s past actions and Pakistan s likely retaliation. De-escalation is crucial to avoid market impact. The Indus Waters Treaty could be an alternative to conflict. Trump administration s openness to China tariffs is also noted, but negotiations are not yet underway.

Gensol Engineering s stock faces a sharp decline, hitting a lower circuit. This comes amid Sebi s investigation into promoters Anmol Singh Jaggi and Puneet Singh Jaggi. They are accused of diverting loan funds meant for EV purchases. Sebi has barred them from capital markets. The company s planned stock split is also on hold.

Bajaj Finance is set to deliver a healthy Q4 performance, driven by strong loan growth across consumer, SME, and rural segments. Net interest income and profit are expected to rise despite slight margin pressure. Analysts see stable asset quality, robust customer additions, and future gains from digital and cross-sell initiatives.