Markets Daily India

Surging Rupee Volatility Signals More Pain for Indian Currency, Equity Bulls

The currency’s sharp slide, rising stock outflows keep investors on edge as market stress builds.

US dollar banknotes at a currency exchange.Photographer: Prakash Singh/Bloomberg

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By Pratigya Vajpayee and Ashutosh Joshi

March 23, 2026 at 2:50 AM UTC

This article is for subscribers only.

Good morning...

I’m Ashutosh Joshi, with the key things to know as financial markets brace for another turbulent week.

Asian stocks are down sharply early on Monday as the US and Iran continue to trade threats, raising fears the conflict could morph into a prolonged energy shock. That’s more bad news for the the Nifty 50, which logged a fourth straight weekly decline despite Friday’s gain. The rupee slid to yet another record low amid continued foreign outflows. With the broader trend still weak, analysts see any near-term uptick as a sell-on-rise opportunity unless geopolitical tensions or energy prices ease meaningfully.

Volatility in regional stocks may rise further as this is Asia’s busiest earnings week of the current results season. About 180 of the 1,200-odd companies that make the MSCI Asia Pacific Index are set to report this week.

In today’s newsletter, we explain why: