International Journal of Contemporary Research in Multidisciplinary

The COVID-19 pandemic triggered one of the most severe financial disruptions in recent history, and Indian markets were no exception. Following unprecedented declines in March 2020, domestic equity markets witnessed a swift and historic rebound within the next two years. This study explores the resilience of India’s financial system in the post-pandemic phase, focusing on both internal recovery drivers and external volatility spillovers. Relying on secondary data from key benchmarks (Nifty 50, Sensex), volatility indices (VIX), foreign portfolio investment (FPI) movements, and global indicators (S&P 500, MSCI Emerging Markets), the paper combines descriptive and econometric perspectives to examine market behavior. The results indicate that India’s sharp recovery was underpinned by supportive policy measures, growing retail investor activity, and sectoral diversification. However, the findings also highlight continued exposure to external risks, particularly U.S. monetary policy shifts and instability in Chinese markets. The paper concludes by outlining key policy and regulatory priorities—such as financial market deepening, strengthening institutional investor participation, and adopting macroprudential safeguards—to enhance long-term market resilience