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Indian banks showed strong Q2 performance, with SBI leading the pack in improving net interest margins despite a 100-bps repo rate cut. Improved liquidity and better deposit repricing strategies supported this. The auto sector saw a sharp rally driven by GST cuts and RBI's 100-bps repo reduction, but valuations have become stretched. FMCG sector showed momentum, with Marico posting 7% volume growth despite GST-related disruptions. Corporate India overall is performing well, with broad-based economic strength.

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