FIIs have been on a withdrawing spree in September and October on the back of US providing more attractive options for investing. In September, they pulled out Rs 21,035 crore from the Indian capital market.

The Sensex lost 14% or over 5,640 points and Nifty is down 14.71% or 1,730 points since August end.

The ED and CEO of Reliance Securities says the market is facing huge headwinds of tightening of global liquidity, resulting in compression of valuations.

After the Sensex lost 14% or 5,640 points and Nifty fell 14.71% or 1,730 points in less than two months, investors including Jhunjhunwala booked heavy losses in their portfolios.

The rupee has fallen over 15% since the beginning of this year on higher current account deficit, soaring crude oil prices and continous foreign investors outflow form the Indian market.

Analysts have attributed the increase in FII outflows to high valuations of the Indian stock market and rising yields in the US bond market. FIIs have been on a withdrawing spree on the back of US market providing more attractive options for investments this year.

And even though both have fallen to 34,000 and 10,200 level from their peak, the growth in India's stock markets is hiding more than it's revealing.

The steep fall in rupee, especially in the last six months, has worried the economists at Rashtriya Swayamsewak Sangh.

With two and a half months still remaining in the current calendar year, the net FII withdrawals could well cross the psychological mark of Rs 1 lakh crore.

The currency opened at 73.80, down 23 paise from its previous close of 73.57 compared to the American dollar. Currently, it was trading at 73.82 level to the dollar.