Indian equities are up by 3.5% during the month, despite correction in developed markets. The FII equity buying accentuated in August 2022 with net buying of about US$6.8bn as against US$0.8bn inflow in July 2022. However, Domestic Mutual Fund sold equity of about US$0.2bn, as against the previous month buying of US$0.6bn. Capital goods, metals, consumer durable, Energy and PSU Bank out-performed during the month; while IT services and Pharma were key laggards. High frequency indicators (like Google Mobility, PMI, E-way bill, GST collection etc) suggest healthy level of economic activity. Electricity demand growth has moderated sharply because of more than normal south west monsoon and unfavorable base. July 2022 Consumer Price Index (CPI) moderated to 6.7% YoY (in-line with expectation) with core inflation easing to 5.8% YoY, suggesting peaking out of inflationary pressures. June 2022 Index of Industrial Production (IIP) grew by 12.3% YoY on a low base and 2.2% on a three year CAGR basis.