Indian equity market rebounded in April after a massive sell-off in March, tracking global peers that had crashed due to fears of economic damage likely to be caused by the covid-19 pandemic.
The recovery rally in equities has prompted investors to ask whether this will sustain. However, analysts do not think so. After falling 38% from their mid-January highs, the Sensex and Nifty have recovered around 23% from March lows.
Both the key indices have so far gained around 7% in April, after losing over 20% in the previous month. However, the limited upside option for Indian stocks has triggered analysts to cut ratings and targets.