• Key market triggers: Total inflows into equity mutual funds reached approximately ₹23,000 crore, with future market momentum expected to be driven by domestic flows, the US-India trade deal, and upcoming July quarterly results.
• Large-cap derivatives: Heavyweight Nifty futures have returned to a premium after trading at an unusual discount, indicating an easing of institutional selling pressure and a recovery from Sensex's 3% underperformance against Nifty.
• Equity asset allocation: Recommended portfolio distribution is 50–55% in large caps, 20–25% in mid caps, and 20–25% in small caps, with domestic inflows strongly supporting mid- and small-cap momentum.
• Sectoral investment opportunities: A further 5–7% decline in the IT index would present a solid buying opportunity, while bottom-up stock picking is favored in aviation, fertilizers, and smaller FMCG companies.