It's safe to invest in debt-free cos

The Chinese method of maintaining export competitiveness is to peg a low Yuan to the USD. By ploughing export earnings back into US treasuries, China also ensures that US interest rates stay low and hence, consumer demand is high.

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The problem is, the US is in trouble and the Chinese strategy has led to the People's Republic of China's economy becoming highly-correlated to America. China cannot pull reserves out of US bond markets without causing a crash that may destroy its cash-cow.  Indian exporters suffer less from similar overdependence on the dollar and US markets. But unlike the pegged Yuan, the rupee has swung wildly in the last 18 months. The short-term direction now depends on two factors. Appreciation will occur if widening yield differentials post the repo-hike triggers higher inflows despite likely downgrades of Indian debt. It will depreciate if portfolio investors continue to sell in large quantities.

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