Eg. If 'X' ltd ( a foreign fund) invest US $ 1000 (at the current rate of US $ 1=Rs. 120)they could get Rs. 120,000 and if they invest total amount in 12/- Rupee share they can buy 10,000 shares. Under the previous situation for US $ 1000 ( before the Budget at the Exchange rate US $ 1= Rs. 108/-) they could get only Rs. 108,000(US $ 1000x 108=Rs. 108,000)and therefore they could have bought only 9000 shares if we consider the price of the share was same. It is almost equal to a 10% discount for foreigners compared to local investors.
Hence depreciation of rupee looks like a very strong factor to encourage foreign investment in CSE.
What are your views friends?