After a day of minor blip, the Indian equities  are expected to continue their bullish trend. Early signals from the SGX Nifty indicates, Nifty may open on a soft note and sustain the psychological 18,000-mark on Thursday.

SGX Nifty, after hitting a high of 18,092, is ruling at 18,067 (7.45 am IST) as against Nifty futures 18,020. The global markets are also ruling flat across Asia-Pacific region. After a sharp fall, the US stocks ended flat on Wednesday amid volatility.

According to analysts, the Bank Nifty will be in focus, as the sector is resilient of late. Most bank stocks either breached all-time/year high, or on the verge of clearing it, said analysts. In a tweet, PR Sundar @PRSundar64, market veteran, said: "Bank Nifty is just 1 per cent away from all-time high. Nifty will hit all-time high before Diwali."

Remains resilient

Despite the US markets correcting sharply on Tuesday post their inflation data, and in line with it, the Nifty opened negative, but witnessed buying interest at lower levels.

"The Nifty ended above 18,000 with only a loss of about four-tenths of a percent, while the Bank Nifty outperformed by a wide margin to end above 41,400 with gains of over 500 points," said Ruchit Jain, Lead Research, 5paisa.com:

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said: "Controlled inflationary environment v/s global peers, strong flows from retail, domestic as well as foreign institutions continue to drive the domestic equities."

Although there can be bouts of volatility due to adverse global cues, he said and added: "Support base buying at lower levels are giving much needed strength to the Indian markets and any sharp decline will be good opportunity to buy."

India Inc's good show

Meanwhile, an analysis by Motilal Oswal Financial Services said: During FY12-22, India Inc’s earnings multiplied 2.6x and reported at a CAGR of about 10 per cent.

There were two distinct growth phases: a) Phase 1 (FY12-17) that clocked a muted PAT CAGR of 6.3 per cent underpinned by a GDP CAGR of 7.1 per cent; and Phase 2 (FY17-22) that posted a higher PAT CAGR of 13.9 per cent, though, GDP growth slipped to 3.7 per cent.

"The stock market returns (Nifty-50) posted an 11.6 per cent CAGR under Phase 1 and 13.7 per cent CAGR under Phase 2. This translated into a Full Cycle (FY12-22) CAGR of 12.7 per cent, broadly in line with the PAT CAGR of 10.1 per cent," it added.

India’s earnings cycle has seen a turnaround after almost a decade and continues to remain healthy, amid the current adverse macroeconomic scenario with heightened worries on rising interest rates, elevated crude oil prices and liquidity tightening that has kept the market volatile and jittery. "We estimate an FY22-24 PAT CAGR of 17%, led by BFSI & Automobiles," it further added.

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