India’s economy is showing resilience, but financial markets remain cautious amid a volatile global environment. The Reserve Bank of India has retained the repo rate at 5.25% while raising its FY27 growth forecast to 6.7%, reflecting confidence in domestic demand and economic activity.
However, rising crude oil prices and geopolitical tensions in West Asia continue to pose risks. The rupee closed around ₹95.75 against the US dollar on August 24, with RBI intervention helping limit volatility.
The equity market also remains under pressure. The Sensex and Nifty slipped about 0.2% on Monday as investors weighed global uncertainties and possible US sanctions on Iran. At the same time, renewed foreign portfolio inflows indicate that international investors continue to see opportunities in Indian assets. The immediate outlook, therefore, remains balanced: domestic fundamentals are supportive, but global oil, currency and geopolitical risks could keep markets volatile.
