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The repo rate is what banks pay to borrow overnight from the RBI. A hike makes loans dearer and cools demand and inflation, and it tends to push bond yields and the rupee up and equity valuations down. The SDF and MSF sit just below and above it, and keep overnight money-market rates inside that band.

CPI inflation is how much consumer prices rose over the past year. It is the number the RBI targets, so a rising print raises the odds of a hike and a falling one opens room for cuts. Take it away from the repo rate to get the real policy rate, which tells you whether policy is actually tight.

The 10-year G-sec yield is what the market charges to lend to the government for ten years. Analysts use it as the rupee risk-free rate in a DCF, so a higher yield lowers the value of every long-dated cash flow. It moves with the repo rate, inflation expectations, government borrowing and foreign demand for Indian bonds.

The US 10-year yield is the benchmark risk-free rate for the world. When it rises, money tends to move back to the US, which pressures emerging-market currencies and foreign buying of Indian stocks and bonds. The gap between Indian and US yields is one thing foreign bond investors weigh.

This is how many rupees one dollar buys, so a higher number means a weaker rupee. A weak rupee helps exporters such as IT services and pharma and hurts importers, oil above all. It also cuts the dollar return of foreign investors, which can set off selling.

The dollar index measures the dollar against a basket of major currencies. A strong dollar usually means weaker emerging-market currencies and tighter money worldwide, which tends to slow foreign flows into India.

The Nifty 50 holds fifty of the largest listed Indian companies and is the headline gauge of the market. Know where it is, how far it sits from its 52-week high and what drove the latest move. A level alone is not enough. Interviewers want a view and the reason for it.

P/E is the index price over its companies’ earnings, so it says how many years of today’s profit the market is paying for. On its own it proves little: compare it with the index’s own history, and set the earnings yield, one over P/E, against the 10-year G-sec yield. P/B and dividend yield are the cross-checks.

India VIX is the swing in the Nifty that the options market expects over the coming month, worked out from option prices. It rises when traders pay up for protection, so it usually jumps when the market falls. A low VIX means calm, not safety.

India imports most of the crude oil it uses, so dearer oil widens the trade deficit, weakens the rupee and feeds inflation. Oil marketing companies, paints, tyres and airlines feel it in their margins, while oil producers gain.

Gold tends to rise when real interest rates fall, when the dollar weakens or when investors want safety. India is one of the largest buyers, so gold imports also add to the trade deficit.

Foreign portfolio investors and domestic institutions, mostly mutual funds and insurers, are the two big buyers and sellers in the cash market. Foreign selling has often been met by domestic buying, helped by steady SIP money into mutual funds. Large foreign outflows also weigh on the rupee.

This counts how many Nifty 500 stocks closed above their own 200-day moving average. When few do, a rising index is being carried by a handful of large names; when most do, the rally is broad. It shows you look past the headline index.