Sensex rises nearly 4% in April on FII inflows, monsoon hopes, and trade optimism

The BSE Sensex gave vital returns, growing nearly 4 per cent in April, regardless of geopolitical tensions. The upturn was pushed by renewed international funding inflows, forecasts of above-normal monsoon rainfall, and constructive prospects of an India-US trade settlement. Additionally, inventory valuations turned extra engaging following current market corrections, resulting in elevated shopping for exercise.
The BSE Sensex benchmark rose by 2,827.32 factors (3.65 per cent), whereas the NSE Nifty climbed 814.85 factors (3.46 per cent) through the month.

During April, the full market capitalisation expanded by Rs 10.37 lakh crore, reaching Rs 4,23,24,763.25 crore (roughly $4.98 trillion).
This marked the second straight month of good points for the benchmark indices. In March, the Sensex surged 4,216.82 factors (5.76 per cent), whereas the Nifty superior 1,394.65 factors (6.30 per cent).
The rally was supported by easing tariff issues, progress on India-US trade discussions, and a turnaround in international institutional investor (FII) exercise.
“The Indian stock market’s resilience and sharp rally in April, despite global concerns and tensions with Pakistan, could be attributed to several supporting factors. The market correction over the past few months helped ease valuations, previously a key concern for investors, thereby reviving buying activity,” mentioned Puneet Singhania, Director at Master Trust Group.
He added that the US announcement of a brief pause on tariffs and indicators of renewed trade negotiations contributed to the aid rally. “After prolonged selling, FIIs turned net buyers of Indian equities in April,” he famous.
The Reserve Bank of India additionally performed a task in lifting sentiment. On April 9, the RBI minimize the repo price by 25 foundation factors to six per cent—its second consecutive discount—and shifted its coverage stance from “neutral” to “accommodative.” The Monetary Policy Committee’s choice was unanimous, geared toward supporting progress amid world uncertainty.
The US had applied complete reciprocal tariffs on April 2, together with a ten per cent baseline obligation and 25 per cent levies on metal, aluminium, and auto elements. However, a 90-day suspension of broader tariffs (excluding China and Hong Kong) till July 9 helped ease investor nervousness.
V Ok Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned: “The surprising resilience of the market is significant. After the reciprocal tariff tantrums and heightened tensions between India and Pakistan, the Nifty ended April in the green. This underscores the importance of not panicking during a crisis.”
Looking forward, analysts say the sustainability of the present rally will rely on This autumn company earnings and world cues, particularly from the US markets, which affect sentiment throughout rising markets like India.
Vinod Nair, Head of Research at Geojit, added: “Momentum is being capped by rising tensions between India and Pakistan and muted Q4 results. This negative bias may persist in the short term, but the long-term outlook remains positive given the minimal financial impact from the conflict.”