Vishal Sachdeva, who has been working as a taxi driver for only five months, said his confidence was shaken after allegedly being struck in the head and called an "Indian mother f---er" by a stranger.

He said the trouble began when he attempted to park at a taxi rank near popular bars around 2am and was confronted by a man standing near the road.

"The guy started showing me the middle finger while I was trying to park there and I tried not to react to it even though he was saying racist things to me," he said.

Mr Sachdeva alleged the man continued to provoke him and asked him to get out of his car and fight, before repeatedly kicking his vehicle.

"I got out of the car with no intention to fight even though he kept telling me to come and hit him," he said. "I said 'I don't want to hit you and you should come and hit me if you really want to'.

"Then he started punching me in the face and I don't know how many times he hit me but you can see the damage in those pictures.

"His language was clearly showing the reason of his anger was just racism because he was keep saying, you bloody Indian, etc."

Mr Sachdeva said he called for the other taxi driver to help but the scuffle continued until a police officer intervened, eventually separating the two men.

The other man, who Mr Sachdeva described as nearly six feet tall and Caucasian, then escaped before being intercepted by police officers on patrol.

"One of the police officers was very friendly and called an ambulance for me and told me not to worry about my car," he said. "He was one of the best police officers I have seen and he looked after me."

Mr Sachdeva said he was released by the Calvary Hospital emergency department on Saturday morning and will undergo CT scans on Monday afternoon to assess the damage to his face.

He will provide another statement to police later this week.

ACT Policing have confirmed the alleged assault is being investigated.