Possible scenario
Selloff Extends
40% Chance
Foreign investors keep selling Indian equities after the RBI's repo-rate increase fails to restore confidence in the rupee. Banks, IT exporters and consumer cyclicals remain under pressure as investors price in tighter credit, weaker earnings and persistent inflation.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- US dollar Up
Secondary impacts
- Finance -1.9%
- Technology -1.5%
Portfolio impact
S&P 500-1.2%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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