An Impact of Currency Fluctuations on Indian Stock Market

ABSTRACT This paper discusses about the factors influencing and impact of currency fluctuation on global economy and Indian stock market, then we shift our focus to Indian rupees factors which causes the currency means rupee fluctuation has been discussed. And what are the factors impact on rupee fluctuation has been covered, in the end we discuss about the steps taken and data taken by RBI website, and what else can be done by investors to lessen the impact of currency fluctuation and what can be done prevent Indian rupee fluctuation. In this article we will identify exchange rate sensitive sectors and stock in Indian market and try to understand the correlation between stock price and exchange rate. Individual investor can exploit this knowledge to earn applicable returns in short term.