Rupee hasn't lost all its firepower: Sandeep J Shah

In an interview to ET Now, Sandeep J Shah, CEO, Sampriti Capital gives his outlook on the depreciation of rupee.

The rupee weakness pushes FIIs to pull out, we have corrected 16.5% year to date on the rupee. How much has that impacted the stocks?

The rupee, in terms of communication to the people has been totally mismanaged. The last thing you want to do is tell speculators, traders, importers that we do not know if we can really defend the rupee because it is a global thing.

It is not that rupee has lost all the fire power at all, we have significant forex reserves. If the dollar index were to rise 20% from here, nothing can stop Asian currencies and emerging market currencies from correcting. The rupee has really scared people and has created a fear.

Due to the fear, markets have seen panic selling & across the board stocks have come off even the defensive ones. But slowly, ther will be buying in the markets. There is no big calamity happening globally. It is just our own self created issues and therefore to that extent I would be a little more worried. when you see stocks correct beyond a point of time you do want to start nibbling if nothing else.