India’s inflation rate from high in 2013/14 to low and again toward high…
Inflation vs nifty what says :-
Comparing your chart with the Indian stock market:
>2012–2014 (Inflation 8–12%)
High inflation + high interest rates.
Nifty delivered volatile returns and valuations stayed under pressure.
> 2015–2019: Inflation moderated (3–5%)
One of the strongest periods for Indian equities.
Lower inflation + stable rates + earnings growth supported a long bull market.
> 2020–2022: Inflation spike (5–7%)
Global supply shocks and commodity inflation created volatility.
However, liquidity and strong corporate profits helped markets recover quickly.
> 2025–2026: Inflation recovering from lows to 4.82%
If inflation stays below 6%, equities can continue to perform, especially:
Banks
Capital Goods
Defence
Power
Manufacturing
If inflation rises above 6–7%, rate-sensitive sectors like IT, real estate, and small caps may face pressure