According to reports, in order to calm markets after the U. S. rating downgrade shook investors already encountered with a global economic slowdown, India's central bank expressed it would ensure effective rupee and forex liquidity.

Also, the statement, just before the markets opened for trading, failed to ease worries and shares falling over 3 %, while the rupee got weak to its lowest in five weeks, and Bond yields dropped for a 3-week as investors looked for ‘safe-haven’ government securities.

The Reserve Bank of India, which has raised interest rates 11 times since mid March 2010 to curb the increasing inflation, expressed that the country's economy had a major resistance to weather the storm.

However, Indian’s central bank said:"While downside risks to growth may have increased in the wake of global developments, they are likely to have limited impact".

Meanwhile, shares all over the Asia are said to have fallen steeply on Monday, irrespective of efforts by global policymakers to handle the fall in the confidence of investors, after S&P downgraded the U. S. credit rating. Hence, India has been attempting to curb the ever high inflation, though the economy displayed signs of slowing down.