The Reserve Bank of India has resumed intervention in the non-deliverable forwards market over the past fortnight to manage rupee volatility triggered by mounting trade tensions with the United States,

Historically, during periods of geopolitical uncertainty and trade-related tensions, investors tend to shift their focus towards domestically driven sectors. Banking stocks, in particular, are often seen as a relatively safer bet in such times.

Uncertainties surrounding U.S. trade policy continue to cast a shadow over the Indian economy’s outlook.