Rupee has taken more knocks than the Sensex

Suggests portfolio rebalancing among foreign investors

Currencies and stock markets are falling across emerging markets. However, the impact of the blow varies from country to country. In China, for instance, the currency is up marginally but its benchmark stock index is down.

In India, on the other hand, the currency has taken a much severe beating than the Sensex, suggesting portfolio rebalancing among foreign investors. In Mexico, the stock market has taken a much bigger beating than its currency.

See chart