<h1>Markets rally on softer US inflation, hopes of rate cuts, US-China trade progress and renewed foreign capital inflows</h1> Benchmark equity indices rose in early trading following a softer-than-expected US inflation print and improved global sentiment, driven by hopes of US interest-rate cuts, prospects of a US-China trade agreement and renewed foreign institutional inflows. Major industrial, telecom, banking and energy stocks led gains while select IT, defence-related, private banking and finance stocks lagged. Trading mirrored broad Asian and US market rallies and a modest rise in Brent crude. Reported foreign purchases and potential tariff reductions on imports could affect cross-border trade and capital flow dynamics, with market volatility remaining a legal and regulatory consideration.