The global macro situation remains tough. After the false dawn in late July, we saw the re-emergence of Inflation risks. This led to the Fed hardening its stance materially- as expected by our team at HDFC Securities Institutional Equities (HSIE). We now expectedly find ourselves in the midst of a long and arduous fight against inflation with the Fed using the twin weapons of Rates and Quantitative Tightening. The cross winds were anyway blowing at full force. Markets were used to coordinated action by Global Central Banks since the 2008 crisis- that alignment has dissipated with the ECB, BoJ, China, and the US (and indeed India) fighting battles of different kinds. Add to that, some self-imposed volatility of the kind we are seeing in the UK and China. The risk-off sentiment and related rally in the Dollar Index has spooked investors.