Rupee at 80, 10-year IGB at 8%: The five bearish forecasts from UBS

The brokerage sees the yield on the 10-year India government bond (IGB) topping the 8 per cent mark before the end of the fiscal.

The selloff in the Indian market is showing no signs of easing with the Nifty on Thursday dropping to its lowest level in more than a year following the US Federal Reserve’s decision to hike policy rates by 75 basis points (bps), steepest since 1994. UBS has issued a note in which it has several red flags for the Indian market. Here are five of them that should prompt investors thread with caution:

INR at 80 v USD

UBS Emerging Market (EM) strategist expects the INR to weaken to 80 against the USD in the next three months, with risks