Domestic investors had it better during Sensex dream run

A falling rupee has eroded gains for international participants, who have seen nearly half their profits vanish compared to local players; global funds are waiting for a currency turnaround to spark a fresh recovery

- SACHIN P MAMPATTA

Indian and foreign investors have had different experiences in earning returns from the same market.

An investor in the BSE Sensex would have made 16,000 per cent returns since 1986 when the index was launched. The returns since the turn of the millennium would be 2,500 per cent but not necessarily for foreign investors. The rupee's depreciation would have taken away nearly half the gains. Returns for dollar-denominated investors (as seen in the Dollex-30) would be around 1,300 per cent since 2001. Recent experience is no different.

The rupee-denominated BSE Sensex has doubled since 2019; the Dollex-30 is up 1.6 times. The rupee recently touched a record low of more than 90 against the dollar.