Macroeconomic Indicators Driving the
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
The Core Valuation Pillars
Equity valuations do not move in a vacuum. At SP RESEARCHVIA PVT. LTD., we analyze sovereign bond yields, inflation metrics, and GDP forecasts to construct Nifty 50 projection models.
How do bond yields affect equity valuations?
Rising government bond yields increase the risk-free rate of return, making equity risks less attractive. This typically causes capital reallocation from equities to bonds, resulting in P/E compression.
Inflation and Margin Compression
Elevated CPI inflation results in margin contraction for consumer companies as raw material costs rise faster than retail product prices, impacting quarterly earnings.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
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