Apr. 10 at 1:58 AM
PickAlpha Midday:
India just showed the classic emerging-market trade-off in real time: save the currency, risk the credibility. The RBI’s late-March crackdown capped banks’ net rupee FX positions at
$100M and curtailed NDF activity, helping the rupee rebound more than 2% — but at the cost of higher hedging costs, potential bank losses, and fresh doubts from offshore investors about policy predictability. 
Tickers:
$INDA $HDB $IBN
Our view is this is bullish for the rupee near term but not cleanly bullish for India assets. When a central bank has to slam the market to stop the currency slide, the message is that stability was bought with discretion — and global investors usually demand a higher risk premium after that.
