Compared to the second half of 2025 when domestic activity indicators were surging upwards, the pace of growth has now slowed. Our rough activity index is still strong, mind you, but is no longer accelerating and has rolled off at the margin.

This in turn, together with lower fuel and gold import prices, points to reduced INR pressures ahead, and we hope to finally see an end to the rupee sell-off of the past 12 months.

In terms of the equity market all of this adds up to a bit of a "good news/bad news" call, and we prefer to remain on the sidelines for the time being until we get a better sense of direction.