April marked a significant recovery for Indian equities, despite benchmark indices experiencing a decline of nearly 0.75% on the last trading day of the month. During this period, the Nifty and the Sensex rose approximately 7%, while sector-specific indices such as Nifty Defence, Nifty Realty, and Nifty Capital Markets saw impressive gains ranging from 21% to 25%. Even the Nifty IT index, which faced pressure due to disappointing earnings reports, managed to close 1% higher by the end of April.
Foreign Portfolio Investors (FPIs) withdrew more than ₹60,000 crore worth of shares during the month. Additionally, the Indian rupee dipped below the 95-per-dollar mark for the first time, with investor sentiment impacted by ongoing geopolitical tensions, particularly regarding the prolonged conflict in Iran. The price of crude oil also exceeded $110 per barrel, raising concerns for India’s import-dependent economy.
Despite this backdrop, global financial advisory firms like HSBC, JPMorgan, and Bernstein downgraded their outlook on Indian equities. Nonetheless, PL Capital has set a target of 27,080 for the Nifty 50, which they attribute to an expected 15% compound annual growth rate (CAGR) in earnings from FY26 to FY28, even in light of global uncertainties and surging crude prices.
The U.S. Federal Reserve maintained stable interest rates but continued to adopt a firm policy stance, thereby bolstering the U.S. dollar and tightening financial conditions for emerging markets.
Among the standout performers, broader indices outpaced the benchmarks in April. The Nifty SmallCap 100 increased by 18.5%, the Nifty Midcap 100 rose by 13.5%, and the Nifty Next50 jumped 15.4%. Notably, MTAR Technologies surged nearly 86%, followed by HFCL and Websol Energy at 71%, Sterlite Technologies, which rose 67%, and Lloyds Enterprises at 65%. Other notable stocks that achieved substantial gains included Ola Electric, which advanced over 60%, alongside Cohance Lifesciences and 63 Moons Technologies, both up by 60% and 58%, respectively.
Conversely, some stocks faced significant declines, including HCL Technologies, Mangalore Refinery, Infosys, and United Breweries, which fell between 5% and 10.60%.
Vinod Nair, Head of Research at Geojit Investments Ltd, remarked, “Despite weak global signals, elevated crude prices, and a depreciating INR, India’s equity markets rebounded from recent lows as investors used the correction to enhance their exposure, supported by better-than-expected earnings amid geopolitical uncertainty.”
Experts, including Vikram Kasat, Head Advisory at PL Capital, suggest that while earnings momentum and domestic fund inflows may sustain the market, volatility could arise from foreign institutional investor selling, higher crude prices, and ongoing global uncertainties.
Published on April 30, 2026.
