The rupee has appreciated steadily against most of the currencies in the recent past. Rupee has appreciated almost 15-20% against the USD. While this makes the imports cheaper, it is painful for exporters.
Infosys , TCS results have shown a downward turn because of the impact of appreciating rupee. IT stocks have not appreciated as fast as other stocks although the sensex is hovering around 15400 levels now.
RBI governer has issued some statement about harm caused to exporters because of the appreciating rupee. We can expect some action from RBI on the same.
Although this trend ( of appreciating rupee) may not augur well for IT companies and stocks, this would encourage a lot of FII flows into the market. Because with an appreciating rupee...a dollar investor would gain even if the market declines provided the rupee appreciation is greater than the market decline.