Last month, the BSE Sensex went up by almost 4%, showing strength even though there were worries around the world. Foreign investors returned to the Indian market, and there’s hope for a good rainy season in the future. Plus, people are excited about the possibility of a trade deal between India and the US.
Stocks became cheaper after a drop in the market, which encouraged more buying. In April, the Sensex increased by 2,827.32 points (3.65%), while the Nifty rose by 814.85 points (3.46%). Overall, this added Rs 10.37 lakh crore, raising the total value of the market to Rs 4,23,24,763.25 crore (around USD 4.98 trillion). This month was the second time in a row that the market saw gains.
In March, the Sensex also rose significantly, and so did the Nifty. The market did well because some tariff worries reduced, and foreign investors brought money back into Indian stocks. This return of investors came after a period where they had been selling off their shares.
Additionally, the Reserve Bank of India (RBI) cut interest rates, making borrowing cheaper which helps boost the economy. On April 9, the RBI lowered the repo rate to 6%. This was the second time they cut rates in a row, and they decided to focus more on helping the economy.
Despite some problems like trade tariffs and tensions between India and Pakistan, the Nifty index rose in April. This situation shows that staying calm during tough times is important, according to V K Vijayakumar, who is Chief Investment Strategist at Geojit Investments.
After the US announced tariffs on several countries, including India, they later decided to pause these tariffs for 90 days (except for China and Hong Kong). However, some other tariffs still exist.
Looking ahead to May, how well the market does will rely on how well companies report their earnings. Because of the importance of the US markets globally, what happens there will be watched closely, as it can affect markets like India. Investors will also pay attention to how the Indian government handles the situation with Pakistan, as this could impact market stability.
In the past week, the market has experienced ups and downs due to rising tensions and mixed company results. But in the long run, the outlook remains positive because the impact from the conflict is expected to be low, says Vinod Nair, Head of Research at Geojit Investments.
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