Worst over for rupee, will strengthen to 72, if not 68: Sushil Kedia
The Indian stock market has a unique love-hate relationship with the USD-INR exchange rate. Over the long run, say from Independence to now, while the stock market may have multiplied say 50,000 times in value, the value of the US dollar against the rupee has multiplied about 75 times. Thus the stock market in India continues to rise with an unabated decline in the value of its currency. Yet, the treasure trove lies in discovering the fact that the majority of the positive returns on the stock market are bunched up during the period the rupee strengthens and dollar corrects within this mega trend of seven decades.
If the analysis proves right, it may be a strong early warning sign for the bears on the Dalal Street to start wrapping up their aggression as Nifty and Sensex will then go back to new highs too.