Dalal Street Outlook: Why High US Interest Rates May Not Hurt Indian Markets

Will persistently high US interest rates put pressure on Dalal Street? Tejas Soman, CIO - Debt at PPFAS Mutual Fund, believes the US-India interest rate differential may not be a major concern for Indian markets. He points to India's relatively stable policies, fiscal discipline and the RBI's focus on inflation control as key sources of confidence. Unlike some emerging markets, foreign portfolio investors hold a relatively small share of India's outstanding government securities, limiting the potential impact of global rate differentials. Soman also highlights the government's continued commitment to fiscal discipline despite Middle East tensions. While global interest rates can influence capital flows, he believes India's domestic economic fundamentals remain resilient. Watch the full conversation for his perspective on US bond yields and Indian markets.