Topic 1: EQUITY: COMEBACK WAVE

April 2025 proved to be a stellar month for Indian equity markets, with benchmark indices scaling record highs on the back of robust fundamentals and upbeat investor sentiment. The BSE Sensex surged from around 73,137 at the start of the month to close at 80,288 on April 29, marking one of its strongest monthly performances in recent times. Meanwhile, the Nifty 50 rallied from approximately 22,700 to end above 24,335, delivering a solid gain of over 6%.

The market rally was driven by a confluence of positive factors. Strong corporate earnings across key sectors, particularly banking, energy, and commodities, reinforced investor confidence. Additionally, favourable global cues—including steady economic data from major economies and easing concerns around interest rate hikes—helped sustain the bullish momentum. A major catalyst behind April 2025’s remarkable market rally was the sharp reversal in activity by Foreign Institutional Investors (FIIs). After offloading over ₹40,000 crore in the first half of the month—amid global tariff uncertainties and risk-off sentiment—FIIs staged a dramatic comeback. In a striking turnaround, they poured more than ₹38,000 crore into Indian equities during the final 11 trading sessions, becoming aggressive buyers and reigniting market momentum. This renewed inflow was instrumental in propelling both the Sensex and Nifty to record highs, with the indices registering over 10% gains for the month. The FII shift was underpinned by a weaker U.S. dollar, easing global trade tensions, and growing optimism around India’s economic prospects, including expectations of continued earnings growth and macroeconomic stability

While FIIs stole the spotlight in April, Domestic Institutional Investors (DIIs) played a crucial supporting role—particularly during the first half of the month, when they helped cushion the impact of FII outflows. However, as foreign inflows surged in the latter half, DII participation moderated, with some signs of profit booking emerging. Overall, DII activity remained more restrained compared to the aggressive stance taken by FIIs, reflecting a cautious approach amid lofty valuations and heightened geopolitical risks. Institutional activity played a pivotal role in the rally. Both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) remained net buyers throughout the month, signalling broad-based conviction in India’s economic growth prospects. Robust Q4 FY25 earnings, particularly from heavyweight corporates, played a central role in fuelling April’s market rally. Leading the pack was Reliance Industries, whose better-than-expected quarterly results triggered a sharp surge in its stock price. As one of the index heavyweights, Reliance’s rally had a significant positive impact on broader market indices, reinforcing bullish sentiment across the board. April’s sectoral performance presented a diverse picture. Information Technology (IT) and banking stocks emerged as the top performers, buoyed by strong earnings and improved business outlooks. The banking sector, in particular, benefited from robust credit growth and healthy asset quality trends. In contrast, pharma and metal stocks faced headwinds, with some players seeing declines due to margin pressures, regulatory concerns, and subdued global demand. This divergence underscored the market’s selective appetite, favouring sectors with clear growth visibility and earnings strength. In essence, April 2025 was a month of record-breaking gains and strong investor optimism. With corporate fundamentals remaining healthy and liquidity flows intact, the Indian markets closed the month on a high note, setting the stage for a potentially strong quarter ahead



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