The risk, however, lies in the possibility that market participants may not get convinced in the absence of other concrete measures by the government to attract investorskeep in mind that while the FII equity portfolio is $250 billion, the FII debt portfolio is around $35 billion. FDI levels are not rising because, despite the governments much-vaunted raising of FDI caps last week, no changes were made in sectors like pharmaceuticals and retail where investors are still interested in coming inin the case of gas, investors like BP have made it clear they will not invest unless prices are completely freed up. While the rupee stabilising remains a matter of speculation, bond yields rising to a 14-month high after Wednesdays RBI measures has put economic growth at risk. Mark-to-market losses of the Rs 16 lakh crore bond portfolios of banks will lower lending and also make it that much more difficult for corporate India to raise funds for any expansions being planned. In the short run, this may not matter, and it can be no ones case that a 2-3 week liquidity squeeze will seriously dent the economy; but it will be a brave person who still believes the interest rate cycle has not turned, that RBI will still make a few more rate cuts in the months ahead. More important, with the Fed clarifying that it will not ease up on bond purchases immediately, the global pressure on the rupee has eased for nowbut were US recovery to pick up pace, and the Fed to lower bond purchases, the pressure on the rupee would once again increase. In which case, it looks unlikely that RBI will call it a victory in a few weeks and restore liquidity. Many brokerages have already lowered estimates on Indias growth and more could follow. Its not immediately clear whether the current account deficit, the original reason for the rupees weakness, will look better when growth slows.