Indices Lose Momentum as Broader Markets Weaken; Volatility Spikes as India VIX Crosses 18 Mark
Benchmark equity indices Sensex and Nifty ended lower on April 30, marking a pause in the recent rally that had seen the indices climb steadily over two sessions. Both indices gave up early gains to close in the red, as market volatility surged sharply toward the end of the trading day. The India VIX, a key indicator of market nervousness, rose by 5 percent, crossing the 18 level, indicating a surge in trader anxiety amid stretched valuations and potential profit booking. At close, the Sensex slipped 46.14 points or 0.06 percent to 80,242.24, while the Nifty dipped 1.75 points or 0.01 percent to 24,334.20. Market breadth remained sharply negative with only 938 stocks advancing, 2,828 declining, and 141 remaining unchanged on the BSE.
Highlights:
Sensex closed down 46 points at 80,242; Nifty down marginally at 24,334.
India VIX jumped 5% to breach 18, indicating higher volatility.
Decline breaks two-day winning streak and ends the month on a cautious note.
FIIs Infuse Over Rs 37,000 Crore in 10 Sessions, Driven by Weak Dollar and India’s Resilience
Despite Tuesday’s tepid market close, foreign institutional investors (FIIs) have continued to play a pivotal role in supporting Indian equities. In just the last 10 trading sessions, FIIs have pumped in a net Rs 37,325 crore, reflecting growing global confidence in India’s macroeconomic stability. Analysts attribute this inflow to factors such as a weakening US dollar, resilient economic fundamentals, and improving trade dynamics between India and the US. The sentiment was further bolstered by comments from US Treasury Secretary Scott Bessent, who noted smooth progress in trade negotiations with Delhi, aided by India’s relatively high tariff regime. These developments have made India more attractive as a long-term investment destination for global funds.
Highlights:
FIIs have infused Rs 37,325 crore in Indian equities over 10 sessions.
India’s economic stability and weak USD cited as key drivers.
Trade talks with the US add to positive investor sentiment.
Midcap and Smallcap Indices Tumble; Year-to-Date Losses Deepen Despite April Rally
The broader market bore the brunt of Tuesday’s weakness, with significant declines seen in the Nifty Midcap 100 and Smallcap 100, which fell by 0.7 percent and 1.7 percent, respectively. Despite a strong April performance driven by earnings optimism and liquidity, both indices continue to show year-to-date declines, with the Midcap index down by 5.3 percent and the Smallcap index lower by a steep 12 percent. Analysts caution that select pockets of the broader market have run up sharply and could be vulnerable to profit-taking, especially given the sharp rise in the India VIX and global risk factors.
Highlights:
Midcap and Smallcap indices declined 0.7% and 1.7% respectively.
Despite gains in April, both indices remain negative for the year.
Midcap index down 5.3% YTD; Smallcap index down 12% YTD.
Sectoral Trends: Pharma and Oil & Gas Shine, Banks and IT Under Pressure
Among sectoral indices, Pharma, Oil & Gas, Infra, FMCG, Realty, and Energy ended the session in the green. The Pharma and Oil & Gas sectors led the gains, with respective advances of 0.6% and 0.4%, buoyed by defensive buying and strong crude-related fundamentals. However, Nifty Bank, PSU Bank, IT, and Metal were the notable laggards, falling between 0.4% to 2%, weighed down by valuation concerns and fund rotation out of high-beta names. The Nifty Bank, in particular, witnessed pressure ahead of expected fund-raising decisions by key state-run players.
Highlights:
Nifty Pharma and Oil & Gas rose 0.6% and 0.4% respectively.
Banking, PSU Bank, IT, and Metal sectors fell 0.4%–2%.
Sectoral rotation underway amid stretched valuations.
SBI Slumps 3% on Fundraising Reports; Vishal Mega Mart Soars 10% on Strong Q4 Results
State Bank of India (SBI) was among the key losers, tumbling 3 percent after reports suggested that the public sector lender is considering multiple fundraising routes for FY26, including a follow-on public offer (FPO), rights issue, or Qualified Institutional Placement (QIP). The final decision is expected to be taken at a board meeting on May 3, pending approvals from the RBI or Government of India. On the flip side, Vishal Mega Mart surged 10 percent after the company posted an 88 percent YoY jump in Q4 net profit to Rs 115 crore. Revenue also climbed 23 percent YoY to Rs 2,548 crore, while same-store sales growth (SSSG) improved to 13.7 percent, compared to 10.5 percent in the previous quarter.
Highlights:
SBI dropped 3% on reports of potential FPO/QIP decision.
Vishal Mega Mart rallied 10% on 88% YoY profit growth and strong SSSG.
Q4 revenue for Vishal Mega Mart rose 23% YoY to Rs 2,548 crore.
Top Gainers and Losers on the Nifty; Key Technical Levels to Watch
Among the top gainers on the Nifty, HDFC Life Insurance, Maruti Suzuki, Bharti Airtel, Power Grid Corporation, and SBI Life stood out with modest gains. On the losing end, Bajaj Finance, Bajaj Finserv, Trent, Tata Motors, SBI, and UltraTech Cement were the primary draggers. From a technical standpoint, analysts see crucial support for the Nifty at 24,200, with deeper supports at 24,100 and 24,000. On the upside, resistance is expected at 24,400, followed by 24,500 and 24,700. For Bank Nifty, immediate support lies at 55,000, with additional supports at 54,700 and 54,400. Resistance levels are pegged at 55,600, and higher up at 55,900 and 56,200.
Highlights:
Nifty gainers: HDFC Life, Maruti Suzuki, Airtel, Power Grid, SBI Life.
Nifty laggards: Bajaj twins, Trent, Tata Motors, SBI, UltraTech Cement.
Key support for Nifty: 24,200; Resistance: 24,500–24,700.
Bank Nifty support: 55,000; Resistance: 55,900–56,200.
