The weak started on a weak note despite strong Q2FY26 GDP numbers that beat consensus expectations as economists were expecting some moderation from Q1FY26 numbers of 7.8% but still above the 7%+ mark. However, the actual number has beaten the expectation with growth coming at 8.2% vs 5.4% YoY and 7.8% in Q1FY26. However, there was a drop in Nominal GDP to 8.7% and we believe this would have been a cause of worry for the markets because it drives income growth, corporate earnings, tax revenues and budget’s fiscal math and this signals mixed picture because when Nominal growth remains soft, people don’t actually recognise economy’s strength. Also, if it doesn’t increase, then demand may get impacted or it may even remain sluggish which may overall impact the revenue and EPS growth.

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