Some how I never understood, how can inflation rise so steeply when the rupee is also increasing fast in last 3-4 months. In other word if you look at it, we can say inflation is far more then what we understood because we should add rupee apprecetion to it.
Another things is, If rupee increases fast and keep on doing so, dose this mean that FII will not be intrested to take there money out of indian stock market because they get double returns. Again fresh buy/sell from FII will have less impact. If rupee is going to increase furhter then non-IT stocks should see steep price rise
