Robert Subbaraman of Nomura said the recent fall in the rupee does not reflect India’s economic fundamentals and described the country as one of the firm’s top picks for 2026 due to low inflation, reforms and strong growth. He said core inflation is around 2.5% and structurally lower because of monetary discipline, fiscal management and measures such as GST, digitalisation and wider foreign investment. Nomura expects the rupee to recover modestly, with the dollar-rupee rate seen at about 90 by year-end.
