Global sell-off hits India, but $1B foreign investment and RBI step in to save the day. Here is what you need to know.
Indian stock market saw a sharp fall driven by a massive tech sell-off in the US and fears of rate hikes.
A strong US Dollar continues to pressure markets. Expect short-term volatility in Indian equities, especially IT stocks.
Canada's Fairfax invested ~$1 billion in Indian government bonds, largely triggered by tax benefits and the IDBI Bank deal.
This massive inflow acts as a strong buffer, signaling immense global confidence in the Indian debt market.
To counter Dollar strength, the RBI is launching a scheme to attract $30–$100 billion in NRI deposits.
Offering 6–7% interest with no currency risk, this masterstroke aims to strengthen the Rupee and boost banking liquidity.