Indian stocks show four aligned bullish cycles as GDP hits 7.8% and earnings grow 18%
Bajaj Finserv CIO Nimesh Chandan identifies four key macroeconomic cycles moving in the same direction to support Indian equities, while merchant lending drives projected financial services revenue growth.
Indian stock markets may be entering a recovery phase as four distinct cycles—economic, business, credit, and sentiment—align positively, according to Nimesh Chandan, chief investment officer at Bajaj Finserv AMC. The asset manager manages approximately $4 billion in assets. Chandan highlighted real GDP growth accelerating to 7.8% in Q1 FY27 compared to 6.9% the previous year. Supporting domestic demand and investment, real gross value added rose 8.2% while household consumption increased 7.1%. Profit metrics also showed significant strength as Nifty companies recorded 18% year-on-year profit growth in Q1 FY27. Large-cap earnings rose 21%, mid-cap profits grew 23%, and small-cap profits advanced 31%. Analysts view this alignment of cycles as creating a supportive backdrop for equities if earnings momentum persists.
