India’s benchmark Nifty 50 index is inching closer to the reclaim psychologically important 25,000 mark, buoyed by strong domestic liquidity, policy optimism, and improving macro indicators. After rising nearly 5 percent in 2025 so far, the index continues to attract investor attention even amid global uncertainties. However, the question remains: is this optimism supported by underlying earnings growth?
In a recent report, brokerage house InCred Equities pointed out that while high-frequency macro data shows a mixed picture for both domestic and export-oriented sectors, recent government policies have rekindled optimism for a broader economic revival. Factors like a stronger-than-expected monsoon, easing fuel prices, and expectations of a higher repo rate cut by the Reserve Bank of India have begun to lift consumer sentiment. The brokerage highlighted that rural demand, in particular, is likely to benefit from favourable weather and price stability, while urban consumption should see relief from easing inflation.
