India in Turbulence: Protests, Allegations, and Market Shockwaves. Would they topple Modi's government ? let us go through

February 11, 2026

India faces political unrest after alleged references to Prime Minister Narendra Modi surfaced in material linked to the Epstein case. While the authenticity and interpretation of these mentions remain contested, opposition parties have mobilized nationwide protests, framing the issue as one of institutional credibility and national integrity.

The government has firmly denied any wrongdoing, calling the allegations speculative and politically motivated.

Why Markets Care

Markets respond not to accusations — but to uncertainty.

As one of the world’s fastest-growing major economies and a key hub for global investment, India’s stability underpins investor confidence. Political confrontation and sustained protests introduce risk perceptions that markets quickly price in.

Potential short-term effects include:

Equity volatility

Pressure on the rupee

Foreign investment hesitation

Cautious bond market sentiment

Globally, concern centers less on the allegations themselves and more on what prolonged instability could imply — policy delays, reform slowdowns, or geopolitical recalibration.

The Broader Reality

In today’s interconnected world, reputational crises transcend borders. Political turbulence can ripple through financial systems, shaping investor psychology and capital flows.

Whether this episode fades or deepens will determine its economic impact. For now, fundamentals remain intact — but in global finance, stability remains the ultimate asset.

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