Sensex, Nifty rally over 12% in April : Should You Invest Now

The Indian stock market witnessed a remarkable rally in April, with the Sensex and Nifty gaining over 12%. This surge was fueled by optimism surrounding macroeconomic resilience and policy support. Broader indices like the Nifty Smallcap 100 and Nifty Midcap 100 also saw significant gains, reflecting a strong recovery across the board.
However, analysts caution that underlying challenges persist. Concerns include unresolved tariff disputes, slowing global economic growth, and earnings downgrades. Additionally, rich valuations across sectors raise questions about sustainability. Domestic brokerage firms attribute the rebound to market complacency, suggesting that optimism may be overshadowing real risks.
Trade and tariff issues remain a key focus, with uncertainties around reciprocal tariffs and non-tariff barriers. While there is hope that India could benefit from trade arrangements with the US, challenges like declining trade surplus and unresolved agreements loom large.
Despite the rally, experts urge caution, highlighting the need to address these risks for sustained growth in the Indian stock market.