Market Outlook - April 2025

Market Update

Indian equities snapped its five-month consecutive decline in March 2025. Markets rebounded with Nifty index surging 6.3% for the month. The broader markets also joined the rally with midcap and small cap indices were up 7.8% and 9.5% respectively. All the sectors ended the month in green except for IT which fell by 1.5%. Power, PSU and Capital Goods rose the most by 14.3%, 14.1% and 13.5% respectively. On the investment front, Foreign Portfolio Investors (FPIs) turned net buyers after months, with positive flows of $737 million of Indian equities in March. Domestic Institutional Investors (DIIs) were also net buyers, acquiring $975 million worth of stocks. Meanwhile, global markets saw mixed results with India being one of the top performers. Brazil (+7.4%), Nifty (+6.3%.) and Indonesia (+3.8%) were the best performing markets. On the negative side, Taiwan and US S&P500 declined the most falling 6.3% each while US Dow Jones (-5.1%) and Malaysia (-3.9%) also faced declines. International economic developments include US Fed indicated two rate cuts this year while keeping the interest rates unchanged, OPEC+ planning to gradually unwind its voluntary production cuts and stronger-than-expected retail sales in the US and China. OECD lowered its forecast for India’s FY26 GDP to 6.4% from 6.9%.