NIFTY fell 1% amid US yields/Oil risks; August saw consumption moderate; EM Mutual funds have added India exposure the most in August; AI Enablers boosting capex growth

India Weekly Kickstart: NIFTY fell about 1% this week amid US yield and oil price risks. Real estate, pharma and FMCG led gains while IT and financials lagged. August activity pointed to some moderation in urban consumption, though investment activity remained broadly resilient; our economists note that a re-escalation of the Middle East conflict, Brent crude above $100/bbl and El Niño-related risks pose downside risks to growth and upside risks to inflation. On foreign positioning, August-end fund allocation data per EPFR suggests active long-only funds' underweight exposure to India has inflected in recent months, and India has seen the largest increase in exposure relative to benchmark among EM funds, yet India remains among the most underweight markets, suggesting ample room for foreign reversal. The report's focus piece examines "AI Enablers", a cohort of 42 AI infrastructure companies, which are contributing materially to NIFTY capex growth;