Indian equities are expected to trade in a broader range this week, influenced by mixed global and domestic conditions. The Reserve Bank of India (RBI) has kept its lending rate steady at 5.25% for the third consecutive meeting, while also lowering its FY27 economic growth forecast to 6.6% and increasing its inflation estimate to 5.1%. The RBI's recent measures to attract foreign investment, including tax exemptions on government bonds, aim to bolster market sentiment. The Nifty 50 index experienced a decline of 2.3% last week, with mid and small-cap indices also falling. As macroeconomic indicators such as the Consumer Price Index (CPI) and Producer Price Index (PPI) data are released, market focus will shift towards these developments. Additionally, the India Meteorological Department has revised its rainfall forecast, indicating a potential impact on rural inflation, which may run higher than urban inflation. The government is also accelerating defense spending, allowing more flexibility in procurement, which could stimulate growth in related sectors.