India was one of the hardest hit of the emerging markets after the US Federal Reserve first hinted it would cut back its quantitative easing program in May 2013. There were three reasons for this. First, global markets over-reacted. Second, India had many macroeconomic weaknesses. Third, since its capital markets were deep and liquid enough, they offered an avenue for portfolio managers targeting reduced exposure to emerging markets.
But since this blow, there have been corrections in all three areas. So the final withdrawal of US quantitative easing (QE), which the US Federal Reserve announced at the end of October, will not have a similar effect on the Indian economy.