New Delhi, July 17 -- India's macroeconomic backdrop remains robust, driven by easing inflation, lower interest rates, a healthy monsoon, and softer crude prices. Eight straight months of easing inflation have fuelled investor confidence and ignited a relief rally.

Investor caution persists, however, as the market awaits Q1FY26 corporate earnings. An upgrade in earnings estimates is key to validating current premium valuations. On the global front, mixed sentiment stems from fading hopes of a near-term U.S. Fed rate cut due to sticky inflation and fresh tariff concerns, notably a proposed 50 percent duty on copper.

Though the Jane Street episode is now behind us, it has left a residue of uncertainty that could prove an impediment to the...