Foreign portfolio inflows and continued strength in global markets have aided sentiment in the wake of receding concerns over inflation. Investors are awaiting the minutes of US Federal Reserve’s late July rate-setting meeting due on Wednesday night to see if the market’s expectations on interest rates and inflation are in line with that of the US central bank
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This strength is underpinned by robust domestic demand, a sustained capex cycle, and relatively limited exposure to global shocks compared to developed markets.