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* S&P upgraded India's sovereign credit rating from BBB- to BBB, with a Stable outlook.

* Earlier, Indian 10-year bond yields hit a 6-month high (6.5%) possibly due to weaker-than-expected direct tax collections.

CPI Inflation 

* July CPI eased to 1.55% (8-year low) but came in above consensus expectations.

* Segment-wise performance: 

* Large Cap (+1.2%): Led by Apollo Hospitals (double-digit rally post-strong results), large cap snapping a 6-week losing streak. 

*  Mid Cap (+0.7%): New-age companies across market cap have outperformed. 

* Small Cap (+0.7): saw broad based rally.

Earnings Season Trends 

* June quarter earnings broadly surpassed estimates, but analysts cutting on the full year forecasts.

* Market reaction has been harsh: Stocks missing expectations saw sharp declines. 

Mutual Funds 

* Record-high MF inflows in July (?42,702 crore) as investors keep faith on Indian equities

Oil & Geopolitics

* Oil prices dipped ~1%

* The markets await the outcome of US-Russia talks. A key focus is whether India will maintain access to discounted Russian oil.

* Some market participants anticipate a potential positive sentiment boost from the PM’s Independence Day speech.

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