Indian markets remain resilient despite student protests, but risks remain

Indian markets have remained resilient despite student protests in New Delhi triggered by a national medical entrance exam paper leak, with the India VIX trading below June 6 levels and equities holding steady. The rupee has slipped about 0.3% this week nearing a record low, and the 10-year bond yield remains capped below 7% amid foreign inflows. Foreign funds have still withdrawn almost $27 billion in 2026, while the RBI flagged risks from renewed Middle East uncertainty and a deficient monsoon that has delayed crop sowing.