New Delhi, Aug. 2 -- The past week offered a glimpse of how quickly market sentiment can shift when key macro variables begin moving in the right direction. After weeks of anxiety surrounding geopolitical tensions, elevated crude prices and global policy uncertainty, investors found relief in a combination of falling oil prices, improving monsoon trends, encouraging Q1 earnings and the return of foreign capital. These developments have strengthened the case that Indian equities may be entering the early stages of a broader recovery.

The most significant trigger came from the sharp correction in crude oil prices. Brent crude, which had surged above US$95 per barrel amid tensions in West Asia, retreated sharply towards US$80, reducing conc...