Indian two thousand rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Nifty And Rupee: No Longer Correlated? 

Every time the rupee depreciated more than 8 percent in the last decade, the Nifty 50 Index declined. So far this year, the benchmark index has bucked the historical trend.

This is how the Nifty reacted when the rupee depreciated substantially the last four times:

Nifty And Rupee: No Longer Correlated? 
  • April 2008-February 2009: Rupee declined 28 percent during the sub-prime crisis; Nifty lost 43 percent.
  • August 2011-June 2012: Rupee depreciated 26 percent; Nifty lost 12 percent.
  • January 2013-August 2013: Rupee fell 20 percent; Nifty lost 8 percent.
  • January 2015-Feb 2016: Rupee corrected 8 percent; Nifty dipped 17 percent.

This year the Nifty 50 has gained 10 percent year-to-date compared with a 12 percent depreciation in the local currency.