Market Resilience in April

The BSE Sensex showcased remarkable resilience in April, climbing nearly 4% despite ongoing geopolitical tensions. This upward trend was fueled by a combination of factors including renewed foreign institutional investor (FII) inflows, optimistic monsoon forecasts, and positive developments in India-US trade negotiations.

Key Drivers Behind the Rally

Attractive stock valuations following recent market corrections played a significant role in reviving buying activity. The BSE Sensex and NSE Nifty saw significant gains, with the total market capitalisation expanding by Rs 10.37 lakh crore, reaching approximately $4.98 trillion. This marked the second consecutive month of gains for the benchmark indices.

Policy Support and Global Influences

The Reserve Bank of India's decision to cut the repo rate by 25 basis points to 6% and shift its policy stance to 'accommodative' further lifted market sentiment. Additionally, the temporary pause on broader tariffs by the US, excluding China and Hong Kong, helped alleviate investor concerns.

Looking Ahead

Analysts caution that the sustainability of the current rally hinges on Q4 corporate earnings and global market cues. Despite short-term challenges, the long-term outlook remains positive, underpinned by minimal financial impact from regional conflicts.