Terrain showed improvement in June
 

• With the suspense over new government formation ending and the monetary policy landscape unchanged, domestic financial conditions, as measured by the Crisil’s Financial Conditions Index (FCI), improved in June after weakening over the past two months
  
• Crisil FCI, a summary indicator that captures key parameters across India’s major market segments1, rose to 0.7 in June from 0.2 previous month
  
• This happened as foreign portfolio investors (FPIs) net-invested after two months of outflows, coinciding with a sharp rise in equity market indices. Investor optimism revived following signs of stability at the Centre and no indications of major changes in the fiscal policy. Additionally, improving domestic liquidity conditions and global cues supported the markets