A key shift in March 2025 was the return of Foreign Institutional Investors (FIIs) as net buyers after some profit-booking in February which helped drive fresh liquidity into the markets.

 In April’25, the markets will closely monitor Jan-March quarter results.  Also, tariff implementation may be another factor impacting the markets. We expect consumption recovery to get broad-based as the income tax cuts propel urban demand, coupled with the buoyant trend in rural consumption levels. 

 Within investments, we see public and household capex driving growth while private corporate capex recovers gradually.

 India’s long-term story remains intact. India is likely to gain share in global output in the coming decades driven by strong foundational factors including robust population growth, a functioning democracy, macro stability influenced policy, better infrastructure, a rising entrepreneurial class and improving social outcomes. 

 We think the market is underestimating the impact of tax cuts for the consumer sector as well as RBI’s policy pivot (regulatory easing, rate cuts, liquidity boost, MFI relaxations etc.). Current Nifty valuations are close to the long-term average which gives us a lot of comfort and supports a positive long-term return outlook.

 Globally, markets will keep an eye on economic data from the US and China, oil price movements and any fresh geopolitical tensions, all of which could sway sentiment. So overall, April looks like a month where earnings, policy and global cues will all be pulling the strings

 we expect FII flows to at least stabilize in the next quarter and eventually turn positive over time. For this to happen, our earnings will need to show substantial improvement from current levels.