In fact, they net sold Indian stocks to the tune of Rs 1227 crores, continuing their selling spree. On Wednesday they had net sold in the cash markets to the tune of Rs 770 crores.

The sharp fall in the rupee is one reason why FIIs have turned aggressive sellers in the market. As the rupee falls the dollar returns on their portfolio gets eroded. A 12 per cent depreciation in the currency so far has unnerved foreign investors, as their dollar returns from the stock markets keep falling.

Unless the rupee stabilises it is unlikely that foreign funds would return to the markets anytime soon.

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