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India’s markets flagged as ‘relative-return disaster’; rupee touches 89 against dollar
India’s rupee slips to ₹89 and markets lag peers as foreign flows stay away despite strong reserves and current-account health.
On 15 November 2025, India’s equity market faced sharp scrutiny as the rupee slid to a 20-year low of ₹89 against the US dollar, while domestic equities under-performed the MSCI Emerging Markets Index by some 27 percentage points year-to-date. Analysts pointed to a strong current account surplus (projected at 0.5% of GDP for FY26) and $690 billion in reserves as supportive, but cautioned that weak foreign inflows and global rate risks remain headwinds.
With large capital outflows looming and the International Monetary Fund flagging global risks, investors are watching for any change in the Reserve Bank of India stance or fresh FII flows to restore momentum.