<h1>Benchmark indices rebound as IT, services, telecom lead gains; midcaps outpace, financials lag on AUM cut</h1> Benchmark equity indices recovered from early losses to finish higher, driven by broad buying in IT, services and telecom stocks amid optimism over a prospective US-India trade agreement and supportive global cues. Midcaps outperformed while smallcaps were mixed. Financial and select industrial stocks lagged after a major non-bank lender cut AUM guidance, prompting sector weakness. Foreign institutional investors were net sellers while domestic institutions bought. Market participants awaited upcoming domestic inflation data and Q3 earnings for direction, with sentiment also aided by easing geopolitical and macro risks and short-covering on weekly derivatives expiry.