. Domestic markets are expected to open flat on Thursday amid mixed global cues. Gift Nifty at 25,200 signals a flattish opening. Analysts expect the market to remain in a consolidation phase.

The US inflation figures come as a positive surprise, said analysts. 

Chintan Panchmatya, Founder, Switch My Loan, said:  “The latest US inflation data brings a measure of relief to global markets. Headline CPI came in at 2.4 per cent and core at 2.8 per cent, both slightly below expectations — reinforcing the view that inflation is moderating in a sustained manner. This eases immediate pressure on central banks to maintain an aggressive stance, even as they remain data-dependent.” This softening inflation trajectory bodes well for interest rate–sensitive sectors like housing and consumer lending. It could translate into relatively stable or lower borrowing costs in the near term, both globally and in India. Lenders and borrowers alike may find this an opportune moment to reassess rate strategies, particularly as transmission into home loan and retail lending rates picks up over the coming weeks.

Meanwhile, India Inc. reported better-than-expected numbers for Q4.

Motilal Oswal Financial said: “The country is experiencing strong GDP growth, a stable currency, and moderating inflation and interest rates, alongside robust corporate earnings. For the first time in many years, corporate earnings are tracking GDP growth, resulting in the corporate profit-to-GDP ratio remaining flat YoY at a 17-year high of 4.7 per cent in FY25,” the report added.

“We take a closer look at the corporate profit-to-GDP ratio achieved by India’s listed corporate sector. Our analysis examines corporate earnings as a percentage of GDP in greater detail, using the Nifty-500 as a proxy for corporate earnings, as this index represents about 90 per cent of India’s market capitalisation.”

As the world grapples with geopolitical challenges, sluggish growth, high inflation, and elevated interest rates, India’s macroeconomic indicators present a contrasting narrative, it further said. 

“This stable ratio was primarily driven by a healthy 10.5% YoY profit growth in FY25, building on a strong earnings base of 30% YoY in FY24, which was broadly aligned with the year’s revenue growth. This performance was bolstered by a robust GDP growth of 9.8% YoY in FY25, following a high base of 12% YoY growth in FY24,” it presented in a report.

According to HSBC Mutual Fund, the Nifty consensus EPS estimate for CY26 saw a small downward revision of 1 per cent during May. Along with the market recovery, the Nifty now trades on 20.4x 1-year forward PE. This is now in line with its 5-year average and about 10 per cent premium to its 10-year average. Valuations in the Midcap and Smallcap space have also recovered following the sharp rally in May.

Meanwhile, Asia-Pacific stocks are mixed as Japan and China markets are down while Australia and Korea are up in early deals.

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Published on June 12, 2025