As the USD-INR rate hits 61, we get that sick feeling in the stomach that next month, my son’s Lego buy will be that much more expensive. However, the sick feeling in the stomach isn’t ours alone. You have some Foreign Institutional Investors for company, who, after six long years, are seeing returns of –8%, while we rupee folks are up 36%.
The DEFTY is an index tracked by the NSE closely with the Nifty – it is the return of the Nifty but in dollars instead.
From July 2007 till now, the Nifty in rupees is close to it’s all time high. But the Defty is about 40% off its own.
These would have been a forgettable 6 years for the FIIs. India’s GDP has doubled, India’s growth remains among the top even though there’s inflation, but the return from stocks has been, in absolute terms, negative.
