July sees good recovery – The Indian markets posted a ~10percent recovery in Jul21, in line with most global markets which were recuperating from heavy losses. Also aiding the Indian market recovery was a steady flow of good results and a reversal of the trend seen in FII activity. The FIIs had been sellers for the past nine months and turned net buyers in Indian equities to the extent of Rs4,989 Cr in Jul22 vs sale of Rs50203Cr in Jun22. Before this the FIIs were retreating due to the reversal of expansionary monetary policy and hikes in policy rates by the Fed to tackle the red-hot inflation. As a result, in the Fed action, some slowdown is already visible in weaker prints like contraction in US PMI services as well as a 0.9percent QoQ decline in GDP.

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