Today the market is almost at the same point it was a year ago. So during the year the market at seen quite a bit of a roller coaster. This year the Indian indices have been strongly affected by the USD strength. This chart is a correlation between the two variables, the USD and INR
. The chart on the top shows a strong negative correlation between the two variables, meaning when the USD becomes stronger the sensex becomes weaker. The fall of the sensex in Aug 2015, in Feb 2016 and again in Nov 2016 amply demonstrate this. If this remains as is then the current decline should continue till positive news in anticipation of the annual reports start to pour in. Watch out for concerns in the either the weakening of the USD or INR
in the coming months.
Comments and thoughts appreciated