New Delhi, Aug. 22 -- Indian equity markets displayed a mixed performance in August 2025, recovering in the last two weeks after six consecutive weeks of declines. The rebound has been driven by multiple tailwinds, including proposed GST reforms, S&P Global's upgrade of India's rating, and easing geopolitical tensions.

The positive sentiment was further reinforced by July's CPI inflation easing to 1.55 per cent, the lowest in eight years. The Reserve Bank of India (RBI) maintained the repo rate at 5.50 per cent. It lowered its FY26 inflation forecast to 3.1 per cent, while maintaining GDP growth projections at 6.5 per cent, suggesting a supportive macroeconomic backdrop despite lingering volatility.

On the geopolitical front, optimism i...