The broader market doesn't like a weak rupee. Historically, stock market returns have been poor in the year when the Indian currency has depreciated against the dollar and vice versa.
The rupee is down 7.1 per cent against the dollar since January and the benchmark BSE Sensex index is up only 2.8 per cent during the period, sharply down from the 17 per cent rise in the same period last year.
The Indian market remained volatile during the week due to the F&O expiry with Nifty able to end above 10,700 on the back of last day (Friday) bounce back.
Rising crude price, depreciating rupee and volatile global market has put pressure on the Indian market. Rupee has crossed 69 per dollar mark during the week and ended at 68.47. Crude prices also jumped to a three-year high.
For the week, Nifty shed 107 points (down 1 percent) at 10,714.3 and Sensex was down 266.12 points (0.74 percent) at 35,423.48.
Foreign investors stayed net sellers, while domestic institutions were buyers in the last week.
India's volatility index (India VIX) rose 7.6 percent last week, while S&P BSE smallcap index declined 3 percent, S&P BSE Midcap down 2.4 percent, and the largecap index shed 1 percent.
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