Comments on: Indian Rupee exchange rate versus NSE CNX IT sector index http://www.galatime.com/2007/05/24/indian-rupee-exchange-rate-versus-nse-cnx-it-sector-index/ A blog about Indian Capital Markets, by Kaushik Gala Tue, 07 Oct 2008 03:31:46 +0000 http://wordpress.org/?v=2.6 By: ravi http://www.galatime.com/2007/05/24/indian-rupee-exchange-rate-versus-nse-cnx-it-sector-index/#comment-2155 ravi Tue, 08 Apr 2008 18:12:55 +0000 http://www.galatime.com/2007/05/24/indian-rupee-exchange-rate-versus-nse-cnx-it-sector-index/#comment-2155 very nice very nice

]]> By: Ankit Tyagi http://www.galatime.com/2007/05/24/indian-rupee-exchange-rate-versus-nse-cnx-it-sector-index/#comment-1816 Ankit Tyagi Mon, 07 Jan 2008 19:35:03 +0000 http://www.galatime.com/2007/05/24/indian-rupee-exchange-rate-versus-nse-cnx-it-sector-index/#comment-1816 It is indeed a very interesting graph that u have provided. Correct me if i am wrong but i see a very clear pattern of the CNX IT index following the movements in the USD/INR exchange rates, albeit (as expected; because of the delay in the income coming in) with a lag of some months (5-6 months as i can observe). 1. The peak in the USD/INR in Oct'05 caused (problably) the peak in the index around April '06. 2. The trough that followed in the USD/INR in Jan'06 similarly reflected in the trough in the index around June'06. 3. Similary, peak in USD/INR in June'06 - peak in CNX IT in Nov-Dec'06. The present movements in the USD/INR would accordingly only reflect by the end of the year. With the CNX IT now trading at 4460.95 levels , the impact can clearly be seen. However not to the extent that would have been expected. It is indeed a very interesting graph that u have provided. Correct me if i am wrong but i see a very clear pattern of the CNX IT index following the movements in the USD/INR exchange rates, albeit (as expected; because of the delay in the income coming in) with a lag of some months (5-6 months as i can observe).

1. The peak in the USD/INR in Oct’05 caused (problably) the peak in the index around April ‘06.
2. The trough that followed in the USD/INR in Jan’06 similarly reflected in the trough in the index around June’06.
3. Similary, peak in USD/INR in June’06 - peak in CNX IT in Nov-Dec’06.

The present movements in the USD/INR would accordingly only reflect by the end of the year. With the CNX IT now trading at 4460.95 levels , the impact can clearly be seen. However not to the extent that would have been expected.

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