New Delhi, April 29 -- A wave of optimism has lifted the Indian stock market in April, with the Nifty 50 and Sensex gaining over 12% from their April lows, while the broader markets also staged a strong comeback, with the Nifty Smallcap 100 index gaining 19.25% from its April 7 lows and the Nifty Midcap 100 index soaring 16.45%.

While optimism over macroeconomic resilience and policy support has fueled a rebound, analysts caution that underlying challenges - from unresolved tariff disputes and a slowing global economy to persistent earnings downgrades - still linger beneath the surface.

Domestic brokerage firm Kotak Institutional Equities attributes the recent rebound to a degree of complacency in the market. The fact that the Indian st...