New Delhi, June 16 -- Despite US tariff-related uncertainty, weak earnings, stretched valuations and foreign capital outflow, Indian stock market has seen decent gains in the first half of the calendar year. Benchmark Nifty 50 is up about 5 per cent year-to-date (YTD), thanks to sustained buying by domestic retail investors amid healthy domestic macroeconomic outlook.

The key factor that has kept the domestic market resilient amid global chaos is the favourable growth-inflation dynamics.

India's retail inflation cooled to its lowest level in over six years in May. Consumer Price Index (CPI)- based inflation eased to 2.82 per cent year-on-year, down from 3.16 per cent in April and 4.8 per cent in May last year.

RBI Governor Sanjay Malho...