‘Triple Whammy’ Hits India: Manishi Raychaudhuri’s ‘Falling Knife’ Warning As Sensex, Nifty Tumble

Emerging markets face a "triple whammy" of record-high US yields, imported inflation, and capital flight toward dollar-denominated assets. Manishi Raychaudhuri explains that these pressures, compounded by escalating geopolitical tensions in the Middle East and threats to the Strait of Hormuz, are driving significant volatility across Asian equities and currencies. The potential expansion of conflict into the Indian Ocean has spiked the IndiaVIX, signaling heightened investor anxiety. While the Reserve Bank of India is expected to hike rates in response to currency pressure and a widening current account deficit, Raychaudhuri advises against "catching a falling knife" by buying the dip prematurely. Instead, capital is likely to gravitate toward cheaper, less leveraged North Asian markets with current account surpluses and safer currencies, which offer better protection against rising costs of capital and energy supply disruptions.