Author: Nishtha Mehrotra | EQMint

India’s economy continues to show resilience even as the stock market remains under pressure. The Nifty has fallen around 13% from its peak, while industrial production, manufacturing output, credit growth and corporate earnings point to continued economic strength.

India’s industrial production grew strongly in August, with manufacturing output rising 9%. April-August industrial output increased 6.7%, compared with 4.2% in the year-ago period. The economy also grew 7.8% in April-June, while Nifty 50 revenue rose more than 18% in the first quarter.

However, stocks are being pressured by global factors, including higher crude prices, rising US bond yields, currency risks and sustained foreign investor selling. FIIs have been net sellers for seven consecutive weeks, with withdrawals of around ₹2.8 lakh crore this year.

The upcoming earnings season could determine whether the market begins to reflect the underlying economic strength. Investors will closely watch margins, order books, industrial credit and demand.

Analysts believe a sustained market recovery will also require lower global bond yields, stable crude prices and a stronger rupee. Until then, the gap between economic fundamentals and stock-market performance could remain a key theme for investors.

Disclaimer: This article is for information purposes only and is not investment advice.

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