Cash dominates India playbooks as markets recoil from oil price shock

Surging oil prices have battered market sentiment toward major energy importer India, pushing down the rupee to a record low and dragging stocks and bonds. With few signs the commodity boom will end soon, investors are bracing for more possible losses.
 

Investors including Quantum Asset Management Co. and ICICI Securities Primary Dealership Ltd. recommend holding on to cash. Stock traders are also treading cautiously, with TCG Advisory Services saying it’s pivoting to software and pharma exporters that tend to benefit from a weaker rupee. The central bank faces a challenging task as well in keeping interest rates low amid risks